- AUD/USD meets with some fresh supply near 200-day SMA amid stronger USD.
- Cautious mood further benefitted the greenback’s perceived safe-haven status.
The AUD/USD pair failed to capitalize on its early uptick and dropped to over one-week lows, around the 0.6860 region during the mid-European session on Monday.
The pair met with some fresh supply near the very important 200-day SMA and drifted into the negative territory for the third consecutive session amid some follow-through US dollar buying interest.
Aussie weighed down by stronger USD
The greenback remained well supported by the recent upbeat US economic data, which raised expectations that the economy will continue to expand and reduced odds of any further rate cuts by the Fed.
This coupled with a slight deterioration in the global risk sentiment further benefitted the USD’s safe-haven status against the perceived riskier currencies – like the aussie – and collaborated to the downfall.
The downside, however, is likely to remain cushioned amid relatively lighter trading volumes on the back of a holiday in the US and absent relevant market-moving economic releases, warranting some caution.
Technical levels to watch
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