AUD/USD Fails to Hold Above 200-DMA, Dips to Wednesday’s Low
AUD/USD Fails to Hold Above 200-DMA, Dips to Wednesday’s Low
The AUD/USD pair failed to resist above 200-DMA at 0.7266 and fell sharply lower over the last hour, as markets sold-off higher-yielding currencies amid escalating risk-off conditions.
AUD/USD drops below 20-DMA at 0.7243
Currently, the AUD/USD pair now trades -0.30% lower at 0.7239, hovering close to fresh session lows struck at 0.7228. The Aussie is seen making minor-recovery attempts, having found support at Wednesday’s low, although remains deep in the red as mixed Aus economic data and poor risk tone continue to dampen the sentiment.
A classic risk-off theme persists in the Asian session this Thursday as the Asian equities plunged and the demand for safe-havens such as the yen, gold etc., was on the rise, which weighed negatively on the risk currencies such as the AUD.
Data-wise, Australia Retail Sales for April came in at +0.2% m/m versus +0.3 previous, although missed expectations of +0.3%, while April trade deficit decreased to 1.579mln versus expected deficit of 2100mln, as compared to -216mln last.
Markets continue to digest the macro news out of the OZ economy ahead of the US ADP jobs data and EIA crude supplies data due later in the NA session.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7299/0.7300 (June 1 high/ round number) above which gains could be extended to the next hurdle located at 0.7350 (psychological levels). On the flip side, the immediate support located at 0.7215/09 (5 & 10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7187/75 (Daily S2/ May 31 Low).
