AUD/USD falls below its 100-hour moving average to a session low of 0.6753
The risk-off vibes is gaining further traction on the session with US futures now down by 0.4% while US 10-year yields are lower by over 6 bps to 1.683% currently.
There aren’t any fresh headlines driving the move in the past few hours but I reckon this is a market readjusting and reacting to the current global backdrop.
And that is one where we will see a continued weakening in the yuan amid ongoing US-China trade tensions as well as a continued slowdown in the global economy.
Back to AUD/USD, price has now fallen back below the 100-hour MA (red line) as sellers regain near-term control of the pair.
There is some minor support around 0.6750 but given the inability for buyers to stage a meaningful recovery towards the end of last week, the path of least resistance continues to point towards a move lower.
The 0.6700 handle and last week’s low of 0.6677 will be the key areas to target for sellers in that regard with any risk to an upside move being above the 200-hour MA (blue line) and around 0.6820 (topside resistance last week).