AUD/USD selling pressure remains unabated, plunges to fresh 5-month lows
• Fails to benefit from broad-based USD weakness.
• Technical factors aggravating selling pressure.
The Australian Dollar remained heavily offered against its American counterpart and pushed the AUD/USD pair to fresh 5-month lows, below mid-0.7500s.
Selling pressure remained unabated through the mid-European session, with the pair failing to find any buying interest despite persistent US Dollar selling bias.
Today's sharp downslide lacked any fresh fundamental triggers and could be attributed to technical selling. Over the past 24-hours, the pair repeatedly faced rejection near the 0.7600 handle and now seems to have prompted some additional long unwinding trade.
Even the prevalent bullish trading sentiment around commodity space, including oil and copper, failed to lend any support to the commodity-linked Australian Dollar.
• AUD continues to trade heavily - Nomura
Meanwhile, some cross-driven weakness, steaming out of a sharp slide in the AUD/JPY cross, further seems to have collaborated towards aggravating the selling pressure on the last trading day of the week.
With the pair set for its lowest weekly close since early June, traders now look forward to the US economic docket, featuring the release of housing starts and building permits, for some fresh impetus.
Technical levels to watch
A follow-through selling pressure below 0.7530 level could get extended, but seems more likely to be limited by the key 0.75 psychological mark, amid near-term oversold conditions.
On the upside, any meaningful recovery attempts might now confront fresh supply near the 0.7580 region and is closely followed by a strong supply zone near the 0.7600 handle.