AUD/USD: technicals headed south, eyes on a 0.7500

AUD/USD is currently testing the downside in a slow start to the week within thin holiday markets for Sydney heading towards a test of 0.7520.

The Australian dollar was the strongest of the majors last week, rallying from the 0.7450's as it 1% against the greenback before consolidating on the current handle. short term technicals are showing signs of exhaustion here and the Momentum indicator heads lower right below its 100 level. RSI indicators are fragile and in some time frames edging lower around 50, in line with the longer term perspective. For the week ahead, traders will be watching for key domestic releases in the jobs data for Australia along with the US CPI, retail sales and the FOMC. 

PBOC sets USD/CNY at 6.7948 vs 6.7971

AUD/USD levels

Analysts at Brown Brothers Harriman explained that the initial support is pegged near $0.7500, and it may require a break of $0.7450-$0.7470 to signal a top is in place.  "Here in Q2, the Australian dollar has only advanced in three weeks. One week in April. One week in May, and now one week in June."

Further out, Valeria Bednarik, chief analyst at FXStreet explained that the daily chart for the AUD/USD pair shows that it was unable to surpass its 100 DMA, but settled a few pips above a horizontal 200 DMA and well above a bullish 20 DMA. "Technical indicators lost upward momentum and turned modestly lower, but are still within positive territory, leaving a neutral stance that can turn negative on a break below 0.7500."