- The dollar gains momentum, despite low Treasury bond yields.
- Wall Street futures and European markets fall.
- AUD/USD tests the area of recent lows.
AUD/USD is trading at 0.6765, just above 0.6759, which is the lowest level in two years that it reached last week. The pair fails to recover ground and remains under pressure.
The break of 0.6760 could trigger further downside, with the next support at 0.6730, which is then followed by 0.6700 and finally a stronger one appears at 0.6660. To the upside, the first resistance looms at 0.6805, followed by 0.6825 and 0.6855.
The bearish tone is behind the climate of risk aversion that persists due to fears of a global recession. In Europe equity markets are falling, as are futures on Wall Street.
On Monday there will be no impact data according to the economic calendar. The key figures this week will be on Wednesday with the US inflation and on Thursday with the Australian employment report.
Technical levels
Source: Fx Street
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