AUD/USD dumped on DXY recovery & copper sell-off

The offered tone behind the US dollar weakens in mid-Europe, fuelling a fresh selling spiral in the AUD/USD pair towards daily troughs.

AUD/USD trades below major DMAs

Currently, the AUD/USD pair drops -0.41% to fresh session lows of 0.7377, having faced heavy supply at 0.73 handle. The Aussie is the weakest amongst the commodities-currencies, having faced double whammy from renewed strength in the US dollar and heavy losses seen in copper prices.

Moreover, a retreat in oil prices coupled with softer European equities; also collaborate to a fresh selling-wave seen around the higher-yielding AUD. Meanwhile, the USD index recovers almost entire losses to now trade around 102.85 levels, up from 102.50 lows, while Comex copper futures slump -1.30% to $ 2.53/ pound.

Markets also looked past the optimism triggered by upbeat Australian Government's Mid-year Economic and Fiscal Outlook (MYEFO) and narrowing budget deficits, as AUD/USD price action is centered on the USD moves and RO-RO trends amid a data-light trading session today.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7301 (daily tops) above which gains could be extended to the next hurdle located 0.7328 (5-DMA) and 0.7400 (10-DMA). On the flip side, the immediate support located 0.7263 (daily S2). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7250 (psychological levels) and below that at 0.7200 (zero figure).