The aussie slips as domestic bond yields also ease lower
Aussie bond yields are much softer on the day amid the risk aversion in markets and that has also weighed on the currency so far in trading today. AUD/USD is treading near the lows for the day but is finding some near-term support around current levels.
At the moment, price is challenging support from the 200-hour MA (blue line) as well as the 38.2 retracement level @ 0.6958 as we begin European trading.
Those will be key levels to watch out for in the near-term as a break below will see sellers seize near-term control and establish a more bearish near-term bias.
Looking further out, the 200-day moving average will be a key spot to keep an eye out for. That currently sits at 0.6899 but a move back below that will see buyers lose their momentum from the end of last year and may precipitate a bigger fall in the currency.
Some other considerations from earlier this week:
