AUD/USD at lowest in two months as sellers look to retest lows for the year

<p>That marks the lowest level for the pair since 2 June with the latest drop looking to take out the end-June and July low near 0.6600. The fall today owes to a softer risk mood mostly amid safety flows but it has been coming since the middle of last month already.</p><p>The double-top near 0.6900 is being confirmed with the breaks of the 100 (red line) and 200-day (blue line) moving averages being solidified. That keeps up the more bearish momentum and with the drop below 0.6600, the next target will be the year's lows near 0.6500.</p><p>From the fundamental side, the RBA potentially moving to the sidelines is a key consideration and as mentioned after the meeting this week, the rate differential between the US and Australia remains at a record in favour of the former. And that is a major tailwind for the aussie as well.</p><p>So, when you couple that with the softer risk mood today as markets are looking for safety bids, it is all adding more downside weight to AUD/USD in the short-term. The next big twist on the week will be the US jobs report on Friday.</p>

This article was written by Justin Low at www.forexlive.com.