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AUD/USD heavy, testing 100-DMA - key support near 0.7160

FXStreet (Mumbai) - The Aussie kicks-off the Fed week on a weaker note, extending its losing-streak into a third day in Asia, as the US currency remains broadly favoured ahead of Wednesday’s Fed lift-off.

AUD/USD losing sight of 0.72 handle

Currently, the AUD/USD pair trades -0.25% lower at 0.7170, having jumped-off lows struck near 0.7160, where 100-DMA coincides. The Aussie dives deeper into the red as the USD bulls continue to ride higher on the back of upbeat retail sales and PPI data from the US released last Friday.

Moreover, oil prices that hover near at seven-year lows negatively impacts the LNG exports from the resource-rich Australia and hence, weigh on the domestic currency. Further, with markets almost certain over a Fed rate hike this Wednesday, US dollar continues to march higher against its major peers, also dragging AUD/USD lower.

Meanwhile, markets completely ignored better than expected China’s macro updates released over the weekend, as the focus now remains on the Fed event due later this week.

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AUD/USD Levels to watch

The pair drops further below 0.73 handle with the immediate support seen at 0.7158/57 (100-DMA/ Nov 23 Low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7129 (daily S2). On the flip side, the immediate resistance is located at 0.7188/90 (50-DMA/ 1h 10-SMA) above which gains could be extended to the next hurdle located at 0.7206 (5-DMA).

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