AUD/USD drops further to test 0.7250
AUD/USD flirting with key support around 0.7255
Currently, the AUD/USD pair trades 0.35% lower at 0.7256, pushing further away from 0.73 handle. The Aussie is seen correcting lower after sharp gains witnessed over the previous two trading sessions as markets preferred to lock-in gains ahead of a series of macro data from the US.
Although the US data releases are expected to have negligible impact on markets, traders may use this as an excuse to reposition their trades ahead of next week’s Fed event.
Moreover, the persisting weakness in oil prices and negative performances seen on the Australian and Chinese stocks also added to downside pressure in AUD/USD. Australia’s S&P/ASX loses -0.15% while China’s A50 index drops -0.75% so far.
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AUD/USD Levels to watch
The pair drops further below 0.73 handle with the immediate support seen at 0.7214 (daily S1). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7195 (50-DMA). On the flip side, the immediate resistance is located at 0.7289 (10-DMA) above which gains could be extended to the next hurdle located at 0.7300 (round number).