Refreshes 10-week low below 0.6500 on China woes

• AUD/USD takes offers to refresh multi-day low amid fears about Australia’s biggest customer China.
• Sustained trading below 0.6550–45 resistance confluence, bearish MACD signals favor Aussie bears.
• Bears attack nine-month-old rising support line with eyes on yearly low marked in June.

AUD/USD drops to a fresh low since May 31, down 0.25% intraday near 0.6480 by the press time, as fears about China join the firmer US Dollar to weigh on the Aussie pair during the Asian session on Monday. In doing so, the risk-barometer pair pokes the key support line stretched from November 2022 with eyes on the yearly low registered in June.

Also read: China’s Country Garden, Zhongrong Trust renew debt market fears

Technically, the Aussie pair’s sustained trading below the 0.6545–50 resistance confluence, comprising the 10-DMA, ascending trend line from October 2022 and 61.8% Fibonacci retracement of October 2022 to February 2023 upside, keeps the bears hopeful.

Adding credence to the downside bias are the bearish MACD signals.

With this, the AUD/USD bears appear well set to break the immediate 0.6480 support line and aim for the yearly low of 0.6458.

However, a clear downside break of 0.6458 will make the Aussie pair vulnerable to drop towards the 0.6360–50 support zone encompassing the late September 2022 lows and early October 2022 tops.

On the flip side, a daily closing beyond 0.6550 will need validation from the lows marked in late June and early July, close to the 0.6600 round figure.

AUD/USD: Daily chart

Trend: Further downside expected