AUD/USD downside wide-open below 0.7000

By FXStreet FXStreet (Guatemala) – AUD/USD remains better offered in a slow day in the US session with labor day with a low of 0.6910 and a high of 0.6950.

AUD/USD lost the key 0.70 last week with a number of attempts to breakthrough the strong support of 0.6980/00. Having penetrated this area, we are now dicing with the downside of the 0.69 handle and looking back at the monthly charts for potential areas of support in a clearly defined bearish trend.

The RBA recently left rates on hold while they wish to continue monitoring the market and economy although since this decision, there have been a number of key data releases that have been downbeat, and we now await the key jobs report this week as next catalyst for the major having already traded the Nonfarm Payrolls news which leaves the door open for a September rate hike from the Fed.

AUD/USD downside levels

Should the downside accelerate, while 0.6500 may have psychological importance, looking back on the longer term charts, there is very little technical until 0.6000. 0.6850 is likely to be an area of support in normal conditions, but as markets as volatile as they have been, 0.6774 June 2004 …read more

Source:: FX Street