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AUD/USD Price Analysis: Bears Set Sight On The 0.7400 Mark

By:
Hassan Maishera
Published: Jul 8, 2021, 14:42 UTC

The Aussie is losing against the US Dollar for the third consecutive trading session today, with bears determined to pull the AUD/USD pair down towards the 0.7400 region.

AUD/USD

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The Aussie has experienced a torrid day so far, compounding losses against the US Dollar during both the Asian and European markets. After dropping to a seven-month low around the 0.7425 region during the early European session, the bears are looking to bring the pair down towards the 0.7400 over the coming trading sessions.

AUD/USD Could Slip Lower

The AUD/USD trading pair has been in a bearish mode this week after rejecting a rally past the 0.7600 region. The Aussie is now on the losing end for the third consecutive session on Thursday, with fresh Covid-19 worries taking their toll on the global risk sentiment. With the Aussie perceived to be a riskier currency, investors dumped it in favor of the safe-haven currencies.

AUD/USD chart. Source: FXEMPIRE

Currently, the AUD/USD pair is trading around 0.7439, slightly recovering from the earlier losses. The US Jobless Claims rising to over 370k is the catalyst that pushed the Aussie higher against the Greenback. However, the AUD/USD pair might not continue the rally if the bearish sentiment returns.

Covid Fears Affects The AUS

Fx Investors are concerned about the possible economic fallout from impositions of fresh restrictions due to the spread of the contagious Delta variant of Covid-19. New South Wales extended the lockdown in Sydney for another week, a move that could further affect economic activities in Australia’s largest city.

From a technical angle, a sustained dip below the YTD lows around the 0.7445 region signifies that more losses are on the cards for the AUD/USD pair. Thus, a further decline towards the next relevant support region around the 0.7400 mark seems like a close possibility.

Some investors would still be looking at the US bond yields and the broader market risk sentiment to see how it influence the Greenback’s price dynamics. If the USD performs well in the coming sessions, it will provide short-term trading opportunities around the AUD/USD pair.

About the Author

Hassan is a Nigerian-based financial Journalist and cryptocurrency investor.

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