AUD/USD Price Analysis: Refreshes 3-month lows, focus on risk assets
- AUD/USD drops to fresh six-month lows near 0.6730.
- The risk-off tone in the global equities seems to be weighing over the Aussie.
The Australian dollar continues to bleed amid coronavirus-led risk aversion in the equity markets.
AUD/USD pair traded at 0.6732 soon before press time. That was the lowest level since Oct. 16.
The pair had carved out a Doji candle and a Spinning Bottom candle on Tuesday and Wednesday, respectively, signaling seller exhaustion. So far, however, the bulls have failed to capitalize on that, allowing the pair to set fresh three-month low below Wednesday'slow of 0.6735.
Both the daily and weekly charts are biased bearish. As a result, further decline toward 0.67 cannot be ruled out.
That said, if the equity markets turn green, signaling a risk reset, the Aussie dollar will likely follow suit. On the higher side, resistance is seen at 0.6777 (Wednesday's high), above which the focus would shift to 0.6849 (Jan. 8 low).
At press time, the AUD/USD pair is trading at 0.6737 and the futures on the S&P 500 are reporting a 0.42% drop.
Trend: Cautiously bearish