FxWirePro: AUD/USD breaks below 0.73 handle, Aussie dented after dovish RBA minutes, covid woes

AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading 0.53% lower on the day at 0.7296 at around 08:10 GMT.

Previous Week's High/ Low: 0.7389/ 0.7315

Previous Session's High/ Low: 0.7372/ 0.7319

Fundamental Overview:

The Reserve Bank of Australia’s (RBA) latest monetary policy meeting minutes show covid-19 interrupted the nation's recovery.

The Board reaffirmed the previously announced change in the rate of bond purchases and said that it would be prepared to act in response to further bad news.

Covid woes, geopolitical tensions emanating from the Middle East and Sino-American tussles weigh on the market sentiment. 

Focus on US Retail Sales due later today. US Retail Sales for July are expected to fall -0.2% versus +0.6% prior. Data will be followed by a speech from Fed Chair Jerome Powell.

Technical Analysis:

- AUD/USD breaks below 110-week EMA to hit 9-month lows

- GMMA shows strong bearish bias on the minor and major trend

- Volatility is high and rising and momentum is bearish

- Recovery was rejected at 21-EMA and upside remains capped at 5-DMA

Major Support and Resistance Levels:

Support - 0.7222 (200-week MA), Resistance - 0.7341 (5-DMA)

Summary: AUD/USD has resumed downside after rejection at 21-EMA. Scope for test of 200-week MA at 0.7222.