- AUD/USD falls for the third day in a row as King dollar rules.
- The aussie pressurizes the downside, with more losses in the offing.
- Daily technical setup keeps the sellers hopeful amid mixed NAB Survey.
AUD/USD is extending its downtrend into the third straight session on Tuesday, having failed to find a strong foothold above 0.7400.
The persistent upbeat mood around the US dollar on Fed’s tightening and tapering expectations combined with growing covid concerns in Australia weighs negatively on the aussie. New South Wales has become the new covid epicenter in the country, with about 350 new cases recorded, as of Tuesday.
The latest leg down in the spot could be attributed to an unexpected drop in the Australian NAB Business Confidence gauge for July, which came in at -8 vs. 15 expected and 11 previous.
Next of note for the major remains the US Labor Cost data amid a scarce calendar. Therefore, the US Senate vote on the $1 trillion infrastructure bill will be eyed.
AUD/USD: Technical outlook
As observed on AUD/USD’s daily chart, the aussie is carving out a bear cross, with the downward-sloping 100-Daily Moving Average (DMA) breaching mildly bullish 200-DMA from above.
A bearish crossover combined with the 14-day Relative Strength Index (RSI) hovering below 50.00 suggests more weakness ahead for the aussie.
The aussie sellers now target the 0.7300 round figure, below which the 2021 lows at 0.7288 could be put at risk.
Alternatively, any pullback attempts could meet initial demand around 0.7350. The bearish 21-DMA at 0.7376 would be the level to beat for the bulls to extend a meaningful recovery.
AUD/USD: Daily chart
