AUD/USD: Bears targeting 200-DMA amid risk-off

The AUD/USD pair kept is offered tone intact, despite in-line with estimates Australian retail sales data, and now extends the downside amid wide-spread risk-aversion, fuelled by reports of 4 ballistic missiles launched by North Korea into the East Sea.

Moreover, return of broad based US dollar demand after Friday’s sell-off added to the bearish bias seen behind the Aussie, with the bears now eagerly eyeing a test of 200-DMA support located at 0.7542.

Further, increased cautiousness ahead of the RBA’s cash rate decision and US NFP report due later this week also keeps the AUD bulls on the back foot.

On Tuesday, the RBA will announce its monetary policy decision at 0330GMT, with markets widely expected the Australian central bank to keep rates on-hold and remain neutral on the policy stance.

AUD/USD Levels to watch   

At 0.7572, the pair finds the immediate support located at 0.7542 (200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7523/20 (Jan-mid lows) and below that 0.7507/00 (Jan 27 low/ round number). On the flip side, the immediate resistance at 0.7591/95/0.7600 (daily pivot/ 50-DMA/ round number) above which gains could be extended to the next hurdle located 0.7640/59 (10 & 20-DMA) and 0.7701/10 (Mar 1 & Feb 27 high).