The Australian dollar is languishing at eight-month lows against the greenback and remains vulnerable for deeper losses, as fundamental and technical factors turn decidedly negative.
The AUD has been under pressure in recent weeks due to lockdowns in Australia's major cities, as the Delta variant of the coronavirus spread in a population that is largely unvaccinated nL1N2OU0JDnL1N2OU0J5.
Concerns over the spread of spread of the virus globally is now negatively impacting global growth prospects and investor risk sentiment.
The Australian dollar is extremely sensitive to global growth sentiment and the impact it has on commodities nL1N2OV0CI.
The AUD/JPY is the foreign exchange market's fear gauge and while sentiment remains sour, the cross will remain under pressure nL1N2OV270.
The AUD/USD has fallen below the 61.8 Fibonacci retracement of the October 2021 low at 0.6990/0.8007 2021 high at 0.7378.
There isn't any technical support of note until 0.7230/35, where the 200-week moving average and the 76.4 of the October low/2021 high converge.
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