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This week’s volatility has done some damage to the market’s technical landscape, with AUD/USD looking vulnerable to further declines unless it manages to close the week above its 200-day moving average at 0.7555, economists at TD Securities brief.

Aussie is now trading below its 200-DMA

“The AUD/USD pair took a quick look below key support at the early-April range low (0.7532), the first real candidate for a ‘lower low’ we’ve had since. Today’s weekly closing level could be instrumental for how market psychology develops in the AUD “” and perhaps beyond.”  

“We won’t say that all would be forgiven on finish back above 0.7532, but we do think it could reduce some near-term bearishness.”  

“More significant, we think, would be a climb back above the 200-DMA (0.7555).”