AUD/USD hits one-week low as S&P 500 futures drop

• AUD/USD hit a one-week low of 0.7158 a few minutes before press time.
• The losses in the S&P 500 futures are likely overshadowing the overnight gains in the US equities and copper.

The AUD/USD pair is currently trading at 0.7169, having clocked a low of 0.7158 soon before press time; a level last seen on Jan. 10.

The Australian currency is feeling the pull of gravity, possibly due to the risk-off tone in the S&P 500 futures. As of writing, the S&P 500 futures are down 0.24 percent on the day. Further, Japan’s Nikkei is reporting a 0.12 percent drop. Meanwhile, Chinese stocks are trading flat-to-negative.

More importantly, the slight risk aversion in Asian stocks is overshadowing the positive overnight leads – Dow rallied 0.59 percent yesterday, as banking stocks cheered upbeat quarterly results. Further, copper, one of Australia’s top exports, gained more than 1 percent.

Looking ahead, the pair could slide toward 0.71 if the risk aversion worsens. Technically speaking, a daily close above the stiff resistance of the 100-day exponential moving average (EMA) would signal a continuation of the rally from recent lows below 0.70

AUD/USD Technical Levels