AUD/USD breaches NY low, 200-DMA back on sight

The AUD/USD pair is back on the offers and breaches NY low at 0.7562, as the bulls suffers from a broad based US dollar correction after the recent Trump-led sell-off.

AUD/USD ignores upbeat China PMI

Currently, the AUD/USD pair drops -0.41% to fresh session lows of 0.7544, now making headways towards 200-DMA support located at 0.7517. The Aussie brought an end to its 3-day rally and now extends retreat from five-day tops reached ahead of 0.76 handle, as markets seek to lock-in gains heading into Trump’s speech and FOMC decision due later today.

Moreover, a relief rally seen in the US treasury yields also weighs on the demand for the AUD as an alternative higher-yielding asset. While negative oil prices and subdued activity around the Asian equities also collaborate to the downbeat tone around the major.

Meanwhile, markets ignored upbeat official Chinese PMI reports, as the spot remains at the mercy of the USD dynamics and risk trends, in light of Trump’s policies. Attention now turns towards the US ADP jobs, ISM manufacturing PMI and FOMC verdict due later in the NA session today.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7600 (round figure) above which gains could be extended to the next hurdle located 0.7631 (Nov 11 high) and 0.7650 (psychological levels). On the flip side, the immediate support located at 0.7515/06 (200 & 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7475 (100-DMA) and below that 0.7446 (Jan 13 high).