AUD/USD: 0.7450 are on the cards

AUD/USD is currently trading at 0.7506 with a high of 0.7535 overnight, 0.7510 in early Asia and a low of 0.7476 overnight and a 0.7502 low in early Asia. 

There were hints of risk aversion seeing to the offers around the Aussie with the S&P500 is down 0.3% and oil also down 0.6%, brent, weighing on the commodity sector.  The IMF reduced its global growth forecast for 2016 from 3.2% to 3.1%, and markets are getting concerned again about what risks of a Brexit pose. Analysts at Westpac explained, "Yesterday's decline has damaged (but not yet reversed) momentum, 0.7480 vulnerable. Markets are refocussing on the 2 Aug RBA meeting."

AUD/USD levels

"AUD/USD 1-3 month: The uncertainty generated by Brexit plus further RBA easing should be negative for the AUD during the months ahead. We target sub-0.72," offered the analysts at Westpac while Valeria Bednarik, chief analyst at FXStreet has explained on a shorter term view that, "Technically, the 1 hour chart shows that the price is now below a strongly bearish 20 SMA, at 0.7510, while the technical indicators have recovered from oversold levels, but lost upward strength within bearish territory." 

"In the 4 hours chart, the decline stalled around the 200 EMA, with short live slides below it having been quickly reverted. Still, the price is far below a bearish 20 SMA, while the technical indicators are correcting oversold readings, but hold far below their mid-lines, indicating the decline may extend at least down to 0.7450."