- AUD/USD dives below 200-DMA, drop in iron ore prices to six-month lows amid risk-off weighs.
- The major has shown a decisive break below 200-DMA, intraday bias lower.
- Downside is currently holding support at 38.2% Fib retrace of 0.7160 to 0.7749 rally at 0.7524.
- Break below will see further drag. We see scope for test of trendline at 0.7475.
- Cautious tone of the RBA minutes along with weakness in iron ore and base metals dampen the Aussie.
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-finds-strong-support-at-07555-200-DMA-good-to-go-short-on-break-below-646137) has hit TP1.
Recommendation: Bias lower. Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -127.933(Bearish), while Hourly USD Spot Index was at -29.245 (Neutral) at 0450 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
