AUD/USD tracks Oil lower, breaches 100-DMA

The Australian dollar halted its two-day post-Brexit rally and turned negative over the last hour, sending AUD/USD below 100-DMA support located at 0.7457.

AUD/USD: Next support at 20-DMA (0.7426) eyed

Currently, the AUD/USD pair trades -0.05% lower at 0.7448, retreating gradually from session highs previously posted at 0.7473 levels pre-Tokyo open. With oil prices drifting lower following Goldman Sach’s bearish projections, risk conditions turned around somewhat and weighed on the higher-yielding/risk currencies such as the AUD.

However, the renewed selling pressure in the AUD/USD pair is seen also as the greenback remains in demand against major peers amid ongoing political and economic uncertainty surrounding the Brexit vote.

Data-wise, markets now look forward to the US weekly jobless claims data due later in the American session, ahead of the Chinese manufacturing PMI reports due tomorrow.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7473 (daily high) above which gains could be extended to the next hurdle located at 0.7500 (daily R1). On the flip side, the immediate support located at 0.7426/09 (20-DMA/ daily S1). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7345 (50-DMA).