AUD/USD is down 0.3% on the day to 0.7364

AUD/USD H1 08-09

The RBA didn't provide much help to the aussie yesterday and a firmer dollar has also helped to drag the pair down to fresh lows in nearly a week, seen at around 0.7364 currently and testing its 200-hour moving average (blue line).

Keep above that and the near-term bias stays more neutral but break below and the bias will favour sellers in search of the next downside leg in the pair.

Further support below the 200-hour moving average is seen closer to the 38.2 retracement level at 0.7336 and then the 50.0 retracement level at 0.7292.

Adding to the pressure today is risk sentiment getting off on the wrong foot to start European morning trade, with regional indices down roughly 1% now and US futures also marked down by 0.4% to start the session.

That will keep trading sentiment favouring sellers for the time being but let's see how well can buyers hold at the key technical level pointed out above.

Otherwise, one can expect a quick drop once sellers make the breakthrough.