AUD/USD bears opening below 0.72 ahead of a busy week

While some analysts had not been expecting comments on monetary policy from Yellen on Friday, she actually delivered to market's on the day when she said "a rate hike in the coming months may be appropriate." Subsequently, the dollar rallied along with US yields, although the move was limited on US GDP Q1 numbers missing expectations, despite annualised improving on prior. Oil was another factor at play, slipping away from $50bbls WTI on output fears, but recovering by the end of the US day from $48.60 to $49.51 at the close.

The bears did manage a break below the 0.72 handle, but a lack of follow through meant 0.7180 was to hold until today's open as all of the above actually comes before the key nonfarm payrolls at the end of a busy week for AUD/USD.  Attentions will also be on retail sales, trade balance and GDP for Australia along with China PMI's, all of which are key drivers for the Aussie and noted by the RBA who are tipped to cut rates again at some later stage this year, weighing on the Australian currency.

AUD/USD levels

AUD/USD is open below the classic pivot of 0.7184 and the ma's are bearish pointing towards further declines at the start of the week. RSI (14) is at 31 while ATR is 0.0013. The 200 dma was broken on the 17th May and recoveries from 0.7145 the low have been shallow and capped by the 200 dma.  0.7109 is next target on the downside (29th Feb low) while upside recoveries that clear the 200 dma would then need to clear the 0.7380 resistance of Oct 2015 and Jan 2016 to alleviate bearish pressures.