AUD/USD Tumbles to Lows Near 0.7200
The selling pressure around the Aussie dollar is now gathering further traction, relegating AUD/USD to the lower end of the range near the 0.7200 mark.
AUD/USD weaker on yields, metals
AUD met increasing downside pressure today after trade balance figures in Oz showed the trade deficit shrunk to nearly A$1.58 billion during April, Retail Sales rose below estimates 0.2% in April and AIG’s manufacturing index dropped to 51.0 in May.
In addition, yields of the Australian 10-year benchmark remains on the defensive today along with declining prices from iron ore and copper.
Ahead in the session, the USD will come to the fore with the release of Initial Claims and the ADP report followed by speeches by FOMC’s Kaplan, Dudley and Powell.
AUD/USD levels to watch
At the moment the pair is losing 0.62% at 0.7214 and a breakdown of 0.7142 (low May 24) would aim for 0.7105 (low Feb.29) and then 0.7063 (23.6% Fibo of the Jan-Apr up move). On the other hand, the next up barrier lines up at 0.7299 (high Jun.1) followed by 0.7356 (high May 11) and finally 0.7403 (high May 11).