The pair is trading closer towards 0.6700 on the day, down 0.4%, as the dollar continues to run riot in the major currencies space. The softer risk tones from declining equities and a weaker yuan also isn't helping the aussie's case, with the RBA also failing to provide much solace for the currency yesterday.
Right now, AUD/USD is looking to contest key technical levels from the trendline support (white line) at around 0.6694 as well as the July low at 0.6681. The pair is already starting to take a look below the 50.0 Fib retracement level at 0.6756 this week, so a break below the other two key levels highlighted will exacerbate the downside momentum if they end up giving way.
It's all about the dollar momentum right now but we might see gains seize up a bit with USD/JPY near 145.00 and USD/CNY on approach towards 7.00, though I wouldn't rule out the greenback keeping its good form as Treasury yields are pushing higher while equities are struggling still ahead of the US CPI data release next week.
