AUD/USD: Clear path for a slump to the 0.7000 support – OCBC

The AUD/USD pair was caught in the crosswinds, losing the 0.7290 range support. Immediate target is at the 0.7224 200-week moving average, but there may be limited technical support up to 0.7000 handle, as strategists at OCBC Bank note.

Door open to a test of 0.7000

“Domestic pandemic concerns, coupled with a generalized slowdown in China, leave the AUD outlook still negative.” 

“Continue to expect south-bound movement for the pair, with the 200-week MA (0.7224) the key level to watch into the end of the week.”

“Few technical supports until 0.7000.”