FxWirePro: AUD/USD refreshes monthly low below 0.67 handle, more downside looks favored

Chart - Courtesy Trading View 

AUD/USD was trading 0.37% lower on the day at 0.6698 at around 06:45 GMT, extends previous session's slump. 

The pair has refreshed monthly low below 0.6700 amid geopolitical tensions and rising hawkish Fed bets.

The US Dollar follows firmer yields, picks up bids amid hawkish concerns surrounding the US Federal Reserve (Fed) and geopolitical fears.

Fed fund futures have now risen above 5.30%, versus 5.10% expected by the US central bank in December.

On the Australia front, recession fears are rising as inflation shows no signs of slowing, bolstering the case of further policy tightening by the Reserve Bank of Australia (RBA). 

Major focus will be on this week's Australia’s Q4 Gross Domestic Product (GDP) numbers seen higher at 0.9% vs. the former release of 0.6%.

A higher-than-projected Australia GDP will accelerate troubles for the RBA as higher activity numbers will favor further hikes.

Support levels:

S1: 0.6663 (50% Fib)

S2: 0.6547 (61.8% Fib)

Resistance levels:

R1: 0.6724 (Cloud base)

R2: 0.6797 (200-DMA)

Summary: AUD/USD trades with a bearish technical bias. Close below 200-DMA and daily cloud has opened downside. Scope for test of 61.8% Fib at 0.6547.