AUD/USD: downside extends and targets break of key 0.7500 level

AUD/USD is continuing within the bearish trend that commenced from 0.7730 down to recently made lows at 0.7529.

AUD/USD is suffering on the back of risk sentiment shifting that is exposing the downside across the EM's and commodity markets. Copped has been sold off today and oil remains under pressure, both weighing on the Aussie. Markets are concerned that Central Banks are running out of ammunition and the US economy is not performing as well as Fed officials have been forecasting creating demand for safer havens. 

"The nearly two cent was the largest decline over two days since the UK referendum," explained analysts at Brown Brothers Harriman., adding,"The Australian dollar's RSI and MACDs warn of the risk of additional selling over the coming sessions.  A break of the $0.7490-$0.7500 area is needed to boost confidence that a high of some import is in place. "

AUD/USD levels

AUD/USD's momentum risks a break of the 0.75 handle and if the next lower August low at 0.7492 were to be slipped through as well, analysts at Commerzbank suggest that the July lows at 0.7421/10 would be back in the picture. "While trading below the 0.77505 August peak the 200 day ma and the 2016 support line at .7405/.7395 will remain in focus."

PBoC set the yuan at 6.6908 vrs 6.6684 last