The Australian Dollar (AUD) was a touch softer this morning after net exports came in softer, current account deficit widened, OCBC FX strategists Frances Cheung and Christopher Wong note.
AUD set to break below 0.6730
“This added to suspicion that 2Q GDP print tomorrow (930am SGT release) may be skewed to the downside. Meanwhile further decline in iron ore futures to 20- month low further undermined AUD.”
“Pair was last at 0.6732 levels. Bullish momentum on daily chart is fading while RSI fell. Corrective pullback is underway. Support at 0.6730, 0.6660. Resistance at 0.6830, 0.6870. Focus this week on 2Q GDP (Wed). A softer print should see AUD come under pressure.
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