AUD/USD: bears keep chipping away looking to break 0.7680 low

Currently, AUD/USD is trading at 0.7683, down -0.10% on the day, having posted a daily high at 0.7692 and low at 0.7683.

Forex today: risk-off puts yen on top below 112 handle vs dollar

AUD fell from 0.7750 to 0.7696 overnight with the stock market dropping creating a risk-off environment in the FX space. Although the dollar suffered and US 10yr treasury yields fell from 2.50% to 2.42% to a three-week low, the high-beta, EM currencies and the antipodeans were the worst performers. Oil fell further today and gold firmed to USD1245/oz. 

Investors are worried that US president Trump's health bill will not be passed. There is also much speculating that tax reform and spending cuts will be delayed and this is pressuring the greenback. While there is the potential for further downside int the dollar, analysts at Westpac still expect to see it slightly lower to around 0.7600:

"A steady hand from the Fed in June plus an optimistic RBA should limit downside on AUD/USD during the next few months. Further out, though,  the underlying AUD trend should be gently lower, as growing bulk commodity supply gradually cools the 2016 price surge. Iron ore should be back under $80/tonne by June, with further (modest) declines likely in H2 2017. (21 March)."

For the day ahead, we get RBA's Deputy Governor Debelle speaking about the global FX code of conduct at the TradeTech FX Asia Conference.

AUD/USD levels

AUDUSD: probably remain in the wide 0.7500/0.7750 range

Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart for the pair shows that its currently a few pips below a horizontal 20 SMA:

"Whilst the Momentum indicator turned flat around its 100 level and the RSI indicator heads lower within positive territory, indicating decreasing buying interest, but not enough to confirm further declines. The downward corrective movement, however, could extend on a bearish acceleration through 0.7690, the immediate support."