- AUD/USD hit Intraday low below 0.7992.
- Decline in Dalian iron ore may have hurt the Aussie.
AUD/USD ran into offers at 0.8030 and hit a session low of 0.7992 after having closed above 0.80 yesterday – highest daily close since July.
The pullback could be a chart-driven. As seen on the 4-hour chart, AUD has been hitting higher highs and higher lows since Jan. 16, while the RSI created lower highs during the same time frame. The bearish divergence seems to have weighed over the Aussie.
Also, the 2 percent drop in the Dalian iron ore prices (one of Australia’s key exports) may have played spoilsport. As of writing, the currency pair is trading at 0.7996 levels.
AUD/USD Technical Levels
Immediate resistance is pegged near the 0.8035 levels. A violation there would expose resistance at 0.8070 and 0.8100 levels. On the flip side, retracement back below the 0.80 handle, leading to a subsequent break under 0.7980 level (yesterday’s lows), could accelerate the fall towards 0.7940 support en-route the 0.7900 round figure mark.