AUD Sell Off Continues

The sell-off in AUDUSD is gathering pace again here with the pair now close to hitting the second target at .7339. With MACD and RSI both bearish here, the outlook remains bearish while below the .7413 level, putting focus on .7243 as the next downside target for bears. The rally in USD this week, along with the fall in equities and commodities, is hitting the Aussie dollar. With USD likely to remain bid across the week, there is room for the move to develop further here.

Key Data to Watch

The release of the RBA meeting minutes over the upcoming Asian session tonight will be key in the near term. The RBA has kept a broadly positive, optimistic view as of late though the bank has been keen to stick to its view that rates will remain on hold until 2024. Any discussion around the ongoing risk from the pandemic (fresh lockdowns, economic impact), will likely weigh on AUD given the current context.