AUD/USD drops further to test Tuesday’s low on poor Aus data

The Australian dollar extends weakness against its American counterpart in the Asian session, sending AUD/USD closer towards 0.73 handle after the Australian consumer sentiment deteriorated in May.

AUD/USD eyes 20-DMA at 0.7307

Currently, the AUD/USD pair trades -0.27% lower at 0.7339, having posted fresh session lows at 0.7334 last minutes. The Aussie prolongs its retreat from multi-week tops and now hovers near weekly troughs as the bears accelerate control following the release of Aus Westpac Consumer Sentiment data, which revealed that recent uncertainty across the financial markets has dampened consumer sentiment in the OZ economy.

The Westpac-Melbourne Institute Consumer Sentiment Index fell 1% to 102.2 in June after rising 8.5% to a two-and-a-half year high of 103.2 in May.

Moreover, falling oil prices and lower Asian equities also add to the poor risk environment and weigh down on the higher-yielding currency AUD. Next in focus remains a fresh batch of US economic releases due later in the NA session ahead of the much anticipated FOMC verdict, which likely to trigger massive volatility across the board.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7390/0.7400 (10-DMA) above which gains could be extended to the next hurdle located at 0.7418/38 (100-DMA/ Jun 10 High). On the flip side, the immediate support located at 0.7307/00 (20-DMA/ round number). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7282 (200-DMA).