AUD/USD: Double-top bearish reversal underway – OCBC

The Australian Dollar (AUD) fell on growth concerns in China (weaker NBS PMI seen over the weekend), softer iron ore prices while USD broadly rebounded, OCBC’s FX analyst Christopher Wong notes.

AUD may suffer a corrective pullback in the near term

The move lower remains in line with our technical caution for the pullback lower. Pair was last at 0.6783 levels. Bullish momentum on daily chart is fading while RSI eased from near overbought conditions. We remain cautious of a corrective pullback in the near term.

Support at 0.6730, 0.6660. Resistance at 0.6830, 0.6870. Data focus this week on 2Q GDP (Wed). A softer print may see AUD come under pressure.