AUD/USD drops further amid weaker copper, risk-off

The AUD/USD pair set-off a brand new week on a softer note, extending last week’s bearish streak, after having failed several attempts to take-out stiff resistances located near 0.7520 region.

AUD/USD eyes a test of Friday’s low of 0.7419

The bears are in control so far this session, as risk-off remains at full steam amid negative Australian indices and tumbling commodities’ prices, particularly copper and oil prices. Copper futures on Comex drop -0.35% to $ 2.558/ pound.

Moreover, steady demand for the US dollar across the board ahead of the US payrolls data due later this week, also keeps the selling pressure intact on the Aussie. Meanwhile, the buck also remains on the bids, following comments from the US President Trump on the tax reforms.

Also, light trading on the back of holidays in China, UK and US that leaves the major largely subdued, as investors gear up for key macro updates (building consents, Capex, retail sales etc.) from the Aus docket slated for release in the week ahead.

AUD/USD Levels to watch   

At 0.7432, the immediate support is located at 0.7426/19 (20-DMA/ Friday’s low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7400 (round figure) and below that 0.7385 (May 17 low). On the flip side, the pair finds the immediate resistance at 0.7456/57 (5 & 10-DMA) above which gains could be extended to the next hurdle located 0.7520/23 (3-week tops/ 200-DMA) and 0.7550 (psychological levels).