AUD/USD bears keep pressure on to test below 0.7300

AUD/USD is really out of the markets favour these days. The Aussie has lost over 500 pips over the last couple of business weeks on the back of a shift of sentiment for the Australian economy and the RBA finally coming to a decision and making a call to action.

The RBA had been sitting on their hands at the end of 2015 and came back into the New Year after a period of "chilling out" and were more vigilant. However, the continuation of the downside in the global economy has taken its toll on the Aussies and indeed the questionable areas of their own economy are rotting at the core of the nation's problems.

The RBA downgraded their inflation forecasts by 1% after cutting interest rates by 25% at their recent meeting and this has sent the Aussine into a spiral; coupled with the greenback advancing across the board while markets seem to be working in a reality that nobody really wants to admit. Commodities are another catalyst that is driving the price to the downside currently.

For the day ahead, markets await China Apr inflation data due at 11:30am Syd/9:30am Beijing. "CPI is seen steady at 2.3% and PPI to rise to -3.7%. Chinese lending numbers have been very strong so far in 2016 so there isn't much tension over inflation," according to analysts at Westpac.

AUD/USD levels

AUD/USD made a low of 0.7294 and is below the 100 dma at 0.7334 and is testing the bull's commitments at the 0.73 level and lowest levels since 2nd March this year where a low scored of 0.7281 was recorded for the candle. Below there, the 200 dma comes in at 0.7258 where early and late Feb bulls were resisted. To the upside, a correction to 0.74 could trigger a reversal to test the 0.7480/90 resistance and challenge the 20 dma at 0.7608.