Double bearish reversal in progress – OCBC

The Australian dollar (AUD) fell on China growth concerns (weaker NBS PMI seen over the weekend), lower iron ore prices, while the USD broadly recovered, notes OCBC currency analyst Christopher Wong .

AUD may undergo a near-term corrective pullback

The move below remains in line with our technical caution for the pullback below. The pair was last at 0.6783 levels. The bullish momentum on the daily chart is fading, while the RSI has declined due to near overbought conditions. We remain on the lookout for a near-term corrective pullback.

Support at 0.6730, 0.6660. Resistance at 0.6830, 0.6870. Data focus this week on second quarter GDP (Wednesday). A softer print may see the AUD come under pressure.