FxWirePro: AUD/USD trades below 5-DMA, poised for further downside

Chart - Courtesy Trading View 

AUD/USD was trading 0.22% higher on the day at 0.6657 at around 04:20 GMT, bias bearish.

The pair is slipping lower after rejection at 200-DMA, extends weakness below 5-DMA which is sharply lower.

Antipodeans remained on the defensive on Monday as concerns about a global credit crunch weighed on commodities.

Bond yields slid as markets scaled back expectations on official interest rates, another drag on prices.

Yields on 3-year bonds slid to near the lowest since last August at 2.749%, a drop of almost 85 basis points so far this month. 10-year yields were at eig8ht-month lows of 3.158%.

On Friday, the U.S. Financial Stability Oversight Council said the U.S. banking system was "sound and resilient" despite stress on some institutions.

However, investors remain wary, assess moves made by authorities and regulators to rein in worries over the global banking system.

Looking forward, the Fed’s preferred inflation gauge, namely the Core Personal Consumption Expenditure (PCE) Price Index in focus for impetus.

Major Support Levels: 

S1: 0.6558 (Lower BB)

S2: 0.6547 (61.8% Fib)

Major Resistance Levels: 

R1: 0.6667 (5-DMA)

R2: 0.6754 (200-DMA)

Summary: AUD/USD trades with a bearish bias. Price action hovers around 50% Fib, resumption of weakness will drag the pair lower to 61.8% Fib at 0.6547.