AUD/USD: price meeting critical support

AUD/USD has been under pressure this week, extending the decline from the start of April's business from highs of 0.7690.

AUD has dropped over 1% and met a fresh low fuelled by the RBA's statement that added ‘an appreciating exchange rate could complicate the adjustment under way in the economy'. This has lead to speculation that the RBA will intervene one way or another, but the most likely scenario could come in the form of a rate cut of 25bps this year while keeping a close eye on the performance of the commodities sector. Commodities major roll in the FX space

"AUD risk appears to be shifting to the downside following the 13% rally from mid-January to late March. AUD has broken below 0.7550, and a consideration of the key retracement levels shifts the focus to 0.7380," explained analysts at Scotiabank.

AUD/USD levels

AUD/USD is testing critical support between 0.7500/20 and if that goes, we are then looking at the late March lows of 0.7477 and 16th March area of resistance. To the upside, the 200 sma on the 1hr is at 0.7594.