FXstreet.com(Barcelona) - After falling 2.60% so far today from opening price at 0.7196 and breaks the 0.7150 support, the AUD/USD is testing the 0.7000 psychology level.
Currently, the pair is trading around 0.7005, fresh lowest level since April the 2nd.
According to Valeria Bednarik, FXstreet.com collaborator, AUD/USD is falling on worst than expected Australian Q1 PPI report: Commodities currencies usually lead the way, and today, is not an exception: Australian dollar fell more than a 2% today, after a worst than expected PPI report for the Q1, with a decline of -0.4% (forecast was of 0.6%). Monetary minutes, to be release in less than 12 hours, and the chance of further rate cuts, will be carefully watched by traders. Canadian dollar also fell heavily following oil that broke under $50.0 a barrel and continues signaling further loses. Both currencies are favoring positive greenback sentiment across the board.
Bednarik Concludes: Aud/Usd fall reaches the 0.7050 and remains close to that level, still with no signs of reversal despite the oversold state the pair has in intra-day charts. Further falls will find support at the key 0.7000 zone, while a clear break under it, could send the pair to 0.6970 and 0.6925 zone. Corrections will find resistances at 0.7110 and then 0.7160, that should hold to keep the bearish longer term.
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