AUD/USD drops further, ready to test last week lows

• The Aussie is the worst G10 performer today and also over the week. 
• DXY rebounds from monthly lows, downside pressure eases. 
• AUD/NZD continues to slide and hit the lowest level since July.

The AUD/USD pair continued to drop during the American session and fell under 0.7700. As of writing it was trading at 0.7685, the lowest level since last Wednesday. 

Aussies weakens remains intact, it started back in February during the equity market correction. It was unable to recover. Chinese financial tightening, trade war fears, commodity prices outlook and yield spreads are among the reasons for the slide. Versus the New Zealand Dollar, the Aussie dropped today to the lowest since July, 2017. 

Technical outlook 

During the US session, AUD/USD failed to break above 0.7715 and resumed the decline. It fell under 0.7690 and appears to be poised for a test of 0.7671 (last week low). 

“Technically and for the short term, the pair is at risk of falling further, as in the 4 hours chart, the pair is below its 20 SMA, while technical indicators entered bearish territory, with moderated bearish slopes”, says Valeria Bednarik, Chief Analyst at FXStreet. 

According to her, the key support is this year low set last week at 0.7671, with a break below it opening doors for a test of 0.7500 during the following days.