Corrective retreat finds temporary support – OCBC

The Australian dollar (AUD) is in a downward spiral, OCBC FX strategists Frances Cheung and Christopher Wong note.

Further decline towards 0.6640 is possible

“Pair was last at 0.6715 levels. Bullish momentum on daily chart faded as RSI fell. Recent pullback may have found interim support at 0.67 (21 DMA). Decisive break may open scope for further decline towards 0.6640. Resistance at 0.6730, 0.6790.”

“2Q GDP released this morning was broadly in line with estimates, while services PMI held steady. With domestic data now behind us, AUD should resume taking cues from stock sentiment and USD movements in the coming sessions.”