FxWirePro: AUD/USD extends previous session's slump, refreshes two-year lows

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.17% lower on the day at 0.6719 at around 09:50 GMT

Previous Week's High/ Low: 0.6894/ 0.6761

Previous Session's High/ Low: 0.6854/ 0.6714

Fundamental Overview:

Sour sentiment weighs on the Australian dollar, dragging the pair lower. Shanghai’s first coronavirus Omicron sub-variant BA-5 case escalated virus woes, keeping market sentiment depressed.

Mixed data from Australia and caution ahead of Thursday’s Aussie employment numbers also exert downside pressure.

National Australia Bank’s (NAB) Business Conditions rose to 13, versus 9 expected and prior 16.

Further, Australia Bank’s (NAB) Business Confidence dropped to 1 from 8 expected and 6 previous.

Focus now will be on Thursday’s Australia jobs report for June as RBA hawks appear running out of steam of late.

Technical Analysis:

- AUD/USD trades below major moving averages which are trending lower

- MACD and ADX support downside in the pair

- Price action is below daily cloud and Chikou span is biased lower

- Momentum is strongly bearish and Volatility is high and rising

Major Support and Resistance Levels:

Support - 0.6678 (Lower W BB), Resistance - 0.6786 (5-DMA)

Summary: AUD/USD trades with a bearish bias. Scope for fresh multi-month lows below 0.67 handle.