- The Australian dollar edged lower to $0.7008, little changed from late Friday in New York, after dropping 2.4 percent last week
- Diverging rate outlook between US and Australia, weighing on AUD/USD, markets give a one-in-three chance of a rate cut by RBA to 1.75 percent before the year end
- Daily price action remains well below the cloud and moving averages, Stochs on 4 hourlies are at oversold and show bearish crossover
- Resistance is located at 0.7040 , while support was found at $0.6977, breaks below could see the pair at 0.6940 levels
- Market betting on China data (due later in the week) staying weak and possibly getting weaker, another negative for the pair
Resistance Levels:
R1: 0.7040 (Sept 25 highs)
R2: 0.7059 (20 DMA)
R3: 0.7089 (Sept 23 highs)
Support Levels:
S1: 0.6977 (Sept 25 lows)
S2: 0.9645 (Sept 10 lows)
S3: 0.6937 (Sept 24 lows)
