AUD/USD breaking lower to test 0.7400 amid broad USD strength

• King dollar rules the roost, accentuates the losses towards 0.7400.
• US PPI and China inflation data eyed for some relief to the AUD bulls.

The bears regained momentum in early Europe, knocking off the AUD/USD pair back toward the 0.74 handle, as the US dollar buying picked-up pace across the board.

The European traders hit their desks and react to the overnight Trump’s decision on Iran’s nuclear deal by bumping up the demand for the greenback, with the US dollar index now rising +0.20% to print fresh 4.5 month tops at 93.30 levels.

More so, the stalled rally in oil prices combined with unimpressive Australian budget collaborated to the renewed weakness in the spot. Meanwhile, downbeat Australia’s retail sales reading also continues to undermine the sentiment around the Aussie.

Attention now turns towards the US PPI data for near-term trading opportunities ahead of the key Chinese CPI report slated for release in Asia tomorrow.

AUD/USD Technical Levels

Jason Sen, Director at DayTradeIdeas.com noted: “The pair expected to continue lower despite oversold conditions targeting 7410, 7385, 7365/60 & perhaps as far as support at 7335/25. Gains are likely to be limited despite oversold conditions with minor resistance at 7470 but try shorts at with stops above 7495/99, with stops above 7520.”