- AUD/USD failed to preserve its intraday gains and started retreating from the 0.7745-50 region.
- The notable drop-off in Chinese iron ore demand may be behind AUD recent slide lower against its major counterparts.
The AUD/USD pair retreated from daily tops and has now dropped to the lower end of its intraday trading range, near the 0.7720 region.
AUD remains biased to the downside this new week. On the downside, support comes in at the 1.7650 level. A cut through here will turn focus to the 0.7600 level and then the 0.7550 level. A violation will set the stage for a retarget of the 0.7500 level. Its daily RSI is bearish and pointing lower suggesting further weakness.
To the north, resistance lies at the 0.7750 level where a breach will aim at the 0.7800 level psychological level would be in play.. Above here will open the door for a run at the 0.7850 level and then the 0.7900 level. On the whole, AUDUSD faces further downside threats.
