AUDUSD breaks key support, sets a new low for 2023 after RBA holds rates

The recent resilience in AUDUSD, which has seen the pair bounce off and hold stubbornly above the 0.6400 major support level came to a dramatic end in today’s session. Risk aversion, disappointing PMI figures out of China and a hold in rates from the RBA all contributing to a break down in the exchange rate seeing AUDUSD break the recent support levels and hit its lowest level since November 2022.

Looking at key levels to watch in AUDUSD the 0.6400 will be key in the short term, this is a major S/R level (as most big figures are in AUDUSD) a retake and hold of this level would cement the recovery in AUDUSD and likely a move higher to re-test the 0.6500 resistance level, however if this level is tested and is confirmed as a new resistance level a further move to the downside  to test key support levels is a probability.

These key levels are:

Daily trendline support around 0.6320

November 2022 lows 0.6275

Major support at the big 0.6200 figure.

Also an RSI under 30, indicating an extreme oversold market, the RSI has been a good indicator of turning points in AUDUSD in the recent past.

Key risk events ahead for AUD will be Australian Q2 GDP released on Wednesday, July’s Trade Balance on Thursday and Chinese CPI figures released on Saturday. AUD traders will need to keep an eye on those key levels over these announcements.