AUD/USD daily chart
That marks the lowest level for the pair since 2 June with the latest drop looking to take out the end-June and July low near 0.6600. The fall today owes to a softer risk mood mostly amid safety flows but it has been coming since the middle of last month already.
The double-top near 0.6900 is being confirmed with the breaks of the 100 (red line) and 200-day (blue line) moving averages being solidified. That keeps up the more bearish momentum and with the drop below 0.6600, the next target will be the year’s lows near 0.6500.
From the fundamental side, the RBA potentially moving to the sidelines is a key consideration and as mentioned after the meeting this week, the rate differential between the US and Australia remains at a record in favour of the former. And that is a major tailwind for the aussie as well.
So, when you couple that with the softer risk mood today as markets are looking for safety bids, it is all adding more downside weight to AUD/USD in the short-term. The next big twist on the week will be the US jobs report on Friday.