AUD/USD slumps to session lows near 0.7070 as USD stays strong

• Today’s inflation data from the U.S.  confirm December rate hike.
• US Dollar Index clings to gains above 96.50.

The AUD/USD came under a renewed selling pressure in the NA session after staying calm a little below the 0.71 mark for the majority of the day. As of writing, the pair was losing 0.23% on the day at 0.7075.

Following a modest downward correction on Friday, the US Dollar Index, which tracks the greenback against a basket of six major currencies, picked up its pace on Monday and today’s data from the U.S. provided an additional boost in the second half of the day. According to the U.S. Bureau of Economic Analysis’ monthly publication, the annual core Personal Consumption Expenditures price index remained steady at the Fed’s target of 2%. Other details of the report showed that personal income and spending rose 0.4% and 0.2% on a monthly basis, respectively.

Additionally, Dallas Fed’s Manufacturing Survey’s headline general activity index improved to 29.4 in October from 28.1 in September. At the moment, the DXY is up 0.28% on the day at 96.60.

In the early trading hours of the Asian session, the Australian Bureau of Statistics will publish the building permits data and the RBA’s Assistant Governor Bullock will be delivering a speech.

Technical levels to consider

The pair could face the first technical resistance 0.7100 (20-DMA) ahead of 0.7150 (50-DMA) and 0.7200 (Oct. 3 high). On the downside, supports are located at 0.7070 (daily low), 0.7020 (Oct. 26 low) and 0.7000 (psychological level).