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Outlook Remains Bearish

AUD

Further losses for AUD/USD on Thursday as the greenback continues to firm, the pair fell from intraday highs of 0.7508 to hit lows of 0.7460 which denoted the lowest level for seven-months. Last trading down 4 pips at 0.7467.

  • On the coronavirus front Australian PM Morrison will reported use today's cabinet meeting to discuss setting vaccination targets which, once reached, would mean lockdowns and travel restrictions would no longer be required.
  • From a technical perspective the outlook remains bearish following the move lower between Jun 11 - 21 that resulted in a break of key support at 0.7532 Apr 1 low. Price is also back below the 200-dma. The move through 0.7532 confirmed a resumption of the reversal that occurred Feb 25 and signals scope for a deeper pullback towards 0.7462 next, the Dec 21, 2020 low. Initial firm resistance is at 0.7617, the Jun 25 high.
  • Housing finance data headlines the local docket today, figures due at 0230BST/1130AEST.

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