AUD/USD dumped to 0.7450 post-Australia Budget, weakest since June 2017

• Weighed down by broad-based commodities’ sell-off, Australia’s retail sales miss.
• Markets disappointed further on the Australian budget release.

The AUD/USD pair keeps its bearish momentum intact following the release of the Australian annual Budget release, as the sell-off across the commodities’ space combined with disappointing retail sales reading continue to weigh negatively on the commodity currency.

The Aussie is the worst performer across the commodity-currencies, with the Australian budget release adding to weight on the local currency, as S&P maintains its ‘negative’ outlook on the economy after the Budget.

Meanwhile, the relentless rise seen in the US dollar against its major peers also collaborates to the declines in the spot, as all eyes remain on the Trump decision on Iran nuclear deal due to be announced at 1800 GMT today.

AUD/USD Technical Levels

According to Slobodan Drvenica at Windsor Brokers, “Near-term outlook remains negative as falling 10SMA (currently at 0.7529) continues to cap and maintain pressure, together with falling thick 4-hr cloud and weakening momentum studies. Fresh weakness repeatedly probed below 0.75 psychological support (without firm break so far) keeping recent low at 0.7472 in focus. Break here would generate a strong signal for the continuation of the larger downtrend from 0.8135 (2018 high) and expose next support at 0.7370.”

“Break and close above 10SMA would be initial positive signal for AUDUSD, while lift above Friday’s recovery high at 0.7560 is needed to spark stronger recovery and open pivotal barrier at 0.7602 (Fibo 38.2% of 0.7812/0.7472 downleg). Res: 0.7529; 0.7560; 0.7583; 0.7602. Sup: 0.7491; 0.7472; 0.7456; 0.7420,” Slobodan adds.