AUD/USD: more downside playing out on 0.73 handle

AUD/USD is in consolidation today after huge supply on the back of last week's inflation report from the RBA, downgrading their outlook by 1% and the subsequent advance in the greenback that even managed to rally on such a poor nonfarm payrolls report; perhaps just a reality that nobody really wants to admit?

The price is trying to stabilize on the 0.73 handle having been as high as 0.7834 on the 21st April. We have seen 5 waves on supply since then. industrial metals took a big hit in Asia yesterday and remain in the red extending losses, and US oil is now trading below the 100 sma othe 4hr sticks down $2.70bbls WTI on the back of inventories growing.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, "the technical indicator have lost bearish strength, but the RSI is now flat around 23 and the Momentum indicator also lacks directional strength well below its 100 level, indicating some downward exhaustion, but by no means suggesting an upward move. Additional declines below the 0.7290 level, should lead to a continued slide down to the 0.7200 region, whilst below this last, the next bearish target is the 0.7000 psychological figure."