AUD/USD: testing the support of 0.7900 ahead of Tokyo open

Currently, AUD/USD is trading at 0.7909, down -0.05% on the day, having posted a daily high at 0.7917 and low at 0.7906.

AUD/USD is testing the downside as we approach the Tokyo open, breaking the sideways channel support and the boundaries of the 0.79 handle. The next catalyst comes in China CPI data, but RBA’s Kent delivered some food for thought ahead of that event keeping Aussie traders on their toes. 

AUD/USD 1-3 month:

Longer term, analysts at Westpac explained that if the RBA remains firmly on hold, as they expect, and the US dollar rises on tighter Fed policy, then AUD/USD could fall as far as 0.74 by year end."

AUD/USD levels

AUDUSD: Selling rallies  

Valeria Bednarik, chief analyst at FXStreet explained, "... the pair bottomed for the day at 0.7886, just above the strong support area at 0.7870, with intraday technical readings favoring additional declines, given that in the 4 hours chart, the price is below a bearish 20 SMA, whilst technical indicators remain within negative territory, lacking, however, bearish strength."