AUD/USD down to session lows at 0.6680 curently
The pair is tracking lower back under 0.6700 and is testing the support region around 0.6670-90 for now, with sellers aiming a move towards retesting the year’s low at 0.6660-62 – which were the lowest levels since 2009.
Besides virus concerns, it is going to be a key week for the aussie on the domestic front as tomorrow we will be getting Q4 wages data before the January labour market report release on Thursday. Between the two, the latter will be the more important.
This is because we already know that wages remains relatively soft and the expectation is for wage pressures to remain that way towards the end of last year.
Considering the risk mood, any upside surprise there will also offer a limited reaction as there is also the wait-and-see mood before the labour market report – which the RBA is heavily focused upon right now.
From a technical perspective though, a nudge lower below 0.6660-62 in AUD/USD sets up the platform for sellers to chase a bigger move lower and if the fundamentals don’t really line up for the aussie, the path of least resistance remains lower.