- AUD / USD is witnessing some continuation selling for the second day in a row on Tuesday.
- Risk aversion benefits the safe haven USD and weighs on the higher perceived risk AUD.
- Investors are now looking forward to US retail sales and Fed Chairman Powell’s speech for fresh momentum.
The pair AUD/USD has lost some more ground during the European session on Tuesday and has dropped to the lowest level since November 2020, around the 0.7280 region.
The pair has extended the losses of the previous day and has seen strong selling during the early part of the trading action on Tuesday. The risk appetite in the markets it has driven some safe haven flows into the US dollar, which in turn has been seen as a key factor dragging the AUD / USD lower for the second day in a row.
The disappointing Chinese macroeconomic data Monday, they added to concerns about the possible economic consequences of the Fast-spreading Delta variant of COVID-19. This, coupled with the political tension in Afghanistan, has affected global risk sentiment and weighed on perceived riskier currencies such as the Australian dollar.
AUD bulls haven’t gotten any respite from Tuesday’s release of the balanced minutes of the RBA monetary policy meeting. The focus of the market now shifts to the monthly US retail sales figures to be released at the start of the US session. Apart from this, the speech of Fed Chairman Jerome Powell could give some boost to the AUD / USD pair.
However, the latest move down now appears to have validated a bearish break below the support marked by the lower bound of a trading range held in the last week. A subsequent decline below the previous yearly lows now appears to set the stage for a further short-term bearish move for the AUD / USD pair.
AUD / USD technical levels
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