- Comex copper has hit a 13-month low today.
- Falling commodity prices could push the AUD/USD below 0.72.
The AUD/USD is fast losing altitude in Asia, courtesy of falling commodity prices.
As of writing, the currency pair is trading at 0.7205, having hit a high of 0.7243 earlier today.
Comex copper has hit a 13-month low of $2.65. Further, gold is reporting a 0.36 percent drop below the psychological mark of $1,200. The drop in the commodity prices is bolstering the already bearish technical setup: bearish pennant breakdown witnessed on the daily chart on August 10.
Meanwhile, data released earlier today showed the consumer confidence in Australia ebbed in August – sinking 2.3 percent to a score of 103.6 – and the second quarter wage price index rose 0.6 percent quarter-on-quarter as expected. The mixed data failed to embolden the Aussie bulls, leaving the currency at the mercy of the commodity prices.
Looking forward, the AUD/USD could drop to 0.7184 (61.8 percent Fibonacci retracement of the rally from the 2001 low to 2011 high) on falling commodity prices. AUD could also take a hit if the Turkish lira resumes the slide.
AUD/USD Technical Levels
Resistance: 0.7243 (session high), 0.7277 (5-day moving average), 0.73 (psychological hurdle)
Support: 0.7184 (61.8 percent Fibonacci retracement), 0.7160 (Dec. 17 low), 0.7136 (76.4 percent Fibonacci retracement of Jan 2016 low - Jan 2018 high)
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