AUD/USD testing new lows, 0.7400 remains in sight

  • The Aussie is testing into new lows for Monday’s quiet action.
  • Econ calendar remains clear until very late Tuesday.

The AUD/USD is continuing to expose its weaker side in Monday’s Asia session, poking down to a new low of 0.7525. The pair has since rebounded to 0.7440, but further downside is likely on the cards.

Data is thin to kick off the new week, with no figures coming out of Australia until very late Tuesday, with the Australian Housing Price Index dropping at 23:50 GMT. The Reserve Bank of Australia (RBA) will also be posting the latest Monetary Policy Meeting Minutes at the time, but the RBA’s stance on the Australian economy has been firmly planted in wait-and-see mode, and is expected to remain as such for the indeterminate future.

The EU and Australia have begun talks to create a free trade pact together, though the process is expected to take a while. Expected roadblocks include agriculture, especially with both countries being agriculture exporters.

AUD/USD levels to watch

The pair has priced in another decline after turning around at a lower high near 0.7680, and a continued slide will see the AUD/USD busting down below 2018’s current low, sitting nearby at 0.7415, while Monday sees fresh resistance piled in at Friday’s high of 0.7450.

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