AUD/USD plunges below 0.7200 to hit fresh multi-month lows

The AUD/USD pair came under renewed selling pressure and accelerated its downslide in the past hour, dropping to its lowest level since late May.

Currently hovering around 0.7170 region, possibilities of stops getting triggered below 0.7200 handle could have attributed to the pair's sharp slide in the past hour of trading. Moreover, news headlines (via Bloomberg) that Chinese President Xi Jinping is ready to see China's economic growth slowing below the government's 6.5% target might have also collaborated to the intense selling pressure around the major. Being Australia's biggest trading partner, economic slowdown in the world's second largest economy tends to weigh heavily on the Australian Dollar. 

Meanwhile, the US Dollar extended its bullish consolidative phase as growing prospects of faster Fed rate-hike actions in 2017 continues to underpin the greenback and is further denting demand for higher-yielding currencies - like the Aussie.

Next in focus would be US economic releases - new home sales and revised UoM consumer sentiment index, later during NY session. 

Technical levels to watch

The ongoing bearish momentum seems strong enough to drag the pair further towards May monthly lows support near 0.7150-45 region, which if broken opens room for continuation of the pair's near-term downward trajectory. On the upside, 0.7200 handle now becomes immediate resistance and any recovery beyond this immediate hurdle might now be capped at 0.7220-25 resistance area.