AUD/USD largely tracks the weakness in commodity bloc currencies as it trades to a fresh yearly low (0.6945), and swings in investor confidence may influence the exchange rate as the US stock market pushes to fresh yearly lows.
As a result, the recent series of lower highs and lows may push AUD/USD towards the July 2020 low (0.6877) amid the deterioration in risk appetite, and it remains to be seen if fresh data prints coming out of the US economy will influence the exchange rate as the Consumer Price Index (CPI) is anticipated to downtick for the first time since August.
AUD/USD may face a further decline over the coming days as it clears the January low (0.6968), and the exchange rate may attempt to test the July 2020 low (0.6877) as it snaps the opening range for May.
AUD/USD clears the January low (0.6968) as it extends the series of lower highs and lows from last week, with a break/close below the 0.6940area raising the scope for a test of the July 2020 low (0.6877) as it snaps the opening range for May.
Next area of interest comes in around 0.6770 to 0.6820 , with a break of the June 2020 low (0.6648) bringing the 0.6510 to 0.6520 area on the radar.
However, lack of momentum to break/close below the 0.6940area may generate a rebound in AUD/USD as the recent decline in the exchange rate fails to push the Relative Strength Index (RSI) into oversold territory, with a move above the 0.7070 to 0.7090 region bringing around 0.7130 to 0.7180 back on the radar.
Trade accordingly with your risk