AUD/USD is closer to 0.73 as the pair extends drop to 2.2% from 0.7478 high on 3 September. The aussie needs to hold above 0.7240 to avoid a deeper retracement, economists at Société Générale report.
“AUD/USD experienced an initial bounce from the low of 0.7110 last month however it has petered out at a multi-month descending trend line near 0.7480/0.7500.”
“Daily RSI has also pulled back from the upper end of its recent range which denotes upside momentum is still lacking.”
“Defending 0.7240, the 61.8% retracement of the rebound will be crucial to avert a deeper down move.”
“A break above 0.7410 can result in an extended up move towards 0.7480/0.7500 and 200-DMA at 0.7600.”