The AUDUSD currency pair, currently at 0.63703, has reached a new low that hasn’t been seen in 10 months, primarily because of the strong and unyielding US Dollar.

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• AUD/USD prints a fresh 10-month low due to the resilient US Dollar.

The pair currently trades last at 0.63703.

The previous day high was 0.648 while the previous day low was 0.6445. The daily 38.2% Fib levels comes at 0.6467, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6458, expected to provide resistance.

The AUD/USD pair refreshes a 10-month low near 0.6360 ahead of the New York opening session. The Aussie asset witnessed an immense sell-off after the Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.10%. RBA policymakers kept doors open for further policy tightening and warned that inflation is still too high and will remain so for some time.

The S&P500 is expected to open on a negative note, considering bearish cues from overnight futures. A power-pack action is expected in US equities as US markets will open after an extended weekend. On Monday, US markets were closed on account of Labor Day. The market tone is negative as investors worry about global growth knowing that western central banks will keep interest rates higher for a longer period.

IMF First Deputy Managing Director Gita Gopinath warned that external conditions had become more challenging for emerging markets due to rising geopolitical fragmentation, tightening financial conditions, and the growing costs of climate change.

Global market mood turned bearish after the Caixin Manufacturing PMI for August dropped significantly to 51.8 vs. the former release of 54.1.

The US Dollar Index (DXY) faces nominal selling pressure after printing a fresh five-month high near 104.84 as global economic activities remain downbeat, facing pressure of aggressive policy tightening by central banks.

Going forward, the US Dollar will dance to the tune of the ISM Services PMI for August. The PMI data is expected to remain broadly unchanged at 52.7.

For further action in the Australian Dollar, investors will keenly watch the Q2 Gross Domestic Product (GDP) data. As per expectations, the Australian economy grew at a 0.3% pace vs. a 0.2% pace, being recorded for Q1. On an annualized basis, the Australian GDP is seen expanding at a slower pace of 1.7% vs. the former pace of 2.3%.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6374 at the time of writing. Pair opened at 0.6462 and is trading with a change of -1.36 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6459, 50 SMA 0.6602, 100 SMA @ 0.6641 and 200 SMA @ 0.672.

The previous day high was 0.648 while the previous day low was 0.6445. The daily 38.2% Fib levels comes at 0.6467, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6458, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6444, 0.6427, 0.6409
• Pivot resistance is noted at 0.648, 0.6498, 0.6515

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