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AUD/USD: Downside opening up towards 0.7600?

The AUD/USD pair faced a double blow in Asia this Monday, and now meanders near daily lows amid weak fundamentals and cautious sentiment, as investors shift focus towards the RBA decision scheduled tomorrow.

AUD/USD eyes 10-DMA at 0.7605

Currently, the AUD/USD pair drops -0.25% to 0.7661, extending retreat from near 0.77 handle. The Aussie is back on the offers following the release of poor Aus retail sales as well as Chinese services PMI data.

China’s Jan 2017 Caixin services PMI came at 53.1 vs 53.6 expected and 53.4 last. While Australia’s retail sales for the month of December came at -0.1% vs +0.3% expected and -1.9% previous.

However, it remains to be seen whether the major extends further to the downside going forward, in light of higher commodities’ prices and a broadly subdued US dollar. While a bout of profit-taking cannot be ruled out after downbeat NFP-led gains, and ahead of Tuesday’s RBA policy decision.          

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7699 (multi-week high) above which gains could be extended to the next hurdle located 0.7750 (psychological levels) and 0.7773 (Nov 9 high). On the flip side, the immediate support located at 0.7653 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7605 (10-DMA) and below that 0.7576 (20-DMA).

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