AUD/USD testing fresh lows near 0.6920

By FXStreet FXStreet (Edinburgh) – The selling pressure is now picking up pace around the Aussie dollar, prompting AUD/USD to drop to the 0.6920 area, or session lows.

AUD/USD weaker on risk aversion

The risk-off sentiment is gathering traction following the closing bell in Asia after another sharp drop of Chinese equities, with the Shanghai benchmark down more than 6% for the day. Commodities are also suffering today, collaborating with the selling pressure in AUD.

Absent activity in the Australian markets due to the national holiday, the pair’s price action will hinge on the risk trends and the US docket, where Markit’s Services PMI and Consumer Sentiment will be in the limelight.

AUD/USD relevant levels

As of writing the pair is retreating 0.29% at 0.6933 facing the next support at 0.6893 (2015 low Sep.7) followed by 0.6824 (low Jan.15) and finally 0.6800 (psychological level). On the other hand, a break above 0.7015 (20-day sma) would open the door to 0.7157 (4-month uptrend prev. sup. now res.) and then 0.7332 (high Dec.31).
For more information, read our latest forex news. …read more

Source:: FX Street