AUD/USD hits new 5-month lows, ignores stronger commodities

The AUD/USD pair is seen reversing a spike to near 0.7350 region and now retreat further to test daily lows struck ahead of 0.73 handle, as the USD regains poise across the board.

AUD/USD on its way of 0.73 handle

Currently, the AUD/USD pair trades -0.22% lower at 0.7316, testing multi-month lows struck at 0.7314 earlier on the day.  The Aussie extends its vertical drop into a fourth day today, as the bears remain in command amid ongoing strength around the greenback against its main rivals. A Dec Fed rate hike is a done deal now, with Yellen’s last week’s comments further fuelling the chances of a lift-off next month.

Meanwhile, the major fails to benefit from the rally across the commodities’ space, particularly in oil, copper and gold prices. Going forward, the main risk events for the major this week remains the Aus construction data, US durable goods data and FOMC minutes, which will drive further moves in the AUD/USD pair.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7344 (daily high) above which gains could be extended to the next hurdle located 0.7374 (5-DMA) and 0.7400 (round number). On the flip side, the immediate support located 0.7300 (zero figure). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7250 (psychological levels) and below that at 0.7199 (June low).