Chart - Courtesy Trading View
Spot Analysis:
AUD/USD was trading 0.22% lower on the day at 0.7027 at around 05:55 GMT
Previous Week's High/ Low: 0.7247/ 0.7037
Previous Session's High/ Low: 0.7137/ 0.7037
Fundamental Overview:
Risk-off mood joins firmer US Treasury yields to favor US dollar and drag the pair lower.
Friday’s upbeat US inflation data which fueled hawkish bets propelled the US dollar higher.
Data released on Friday showed US headline CPI rose to 8.6% YoY versus 8.3% expected while the Core CPI jumped 6.0% YoY compared to the expected drop to 5.9% from 6.2% a month earlier.
China’s Defense Minister Wei Fenghe's comments which noted that 'China's relationship with the US is at a crossroads' weighed on sentiment.
Crucial to watch this week for impetus will be Wednesday’s Federal Open Market Committee (FOMC) and Thursday’s Aussie jobs report.
Technical Analysis:
- AUD/USD extends weakness for the 4th straight session
- GMMA indicator shows major and minor tend are bearish
- MACD is on verge of bearish crossover on signal line
- ADX supports downside, momentum is bearish, RSI is below 50
Major Support and Resistance Levels:
Support - 0.6959 (Lower BB), 0.6828 (May low)
Resistance - 0.71, 0.7115 (5-DMA)
Summary: AUD/USD trades with a bearish bias. 0.70 handle is temporary support, breach below will see more downside.


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