AUD/USD dips below 0.7400 as commodity currencies weaken

FXStreet (Córdoba) - The Australian dollar extended losses during the New York session, tracking weakness in CAD and NZD which are at multi year lows against the greenback.

The US dollar strengthened broadly, putting commodities under pressure after Yellen hawkish remarks, while CAD fell to a 6-year low on the back of BoC rate cut and NZD/USD hit a 4-year low in the wake of Fonterra’s GlobalDairyTrade price index drop.

Against this backdrop, AUD/USD fell sharply and dipped below the 0.74 mark to hit a low of 0.7390 before finding support. At time of writing, AUD/USD is trading at 0.7405, still 0.59% lower on the day.

AUD/USD levels to watch


In terms of technical levels, next supports for AUD/USD are seen at 0.7382 (Jul 13 low) and 0.7371 (6-year low Jul 8). On the flip side, resistances could be found at 0.7466 (10-day SMA), 0.7488 (Jul 15 high) and 0.7500 (psychological level).

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