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Aussie dollar falls to seven-week low against the US dollar
AUDUSD dropped more than 1% and broke key support levels near 0.7070, setting up a test of 0.7000 support.
Action Forex reports that AUDUSD slid to a seven-week low on Wednesday, with the US dollar strengthening as markets increasingly expect the Fed to take more aggressive action.
The outlet said expectations that elevated oil prices will keep fueling inflation are driving the tightening-cycle view, helping push the Aussie dollar lower, with AUDUSD down over 1% during the move.
Action Forex added that the currency pair violated key technical support around the 0.7070 zone and 0.7050 area, which it linked to bearish signals on the daily chart.
It noted that downside targets being watched include 0.7016 and 0.7007, with 0.7000 identified as a psychological and daily cloud support level, and that a firm break of 0.7000 could further weaken the near-term structure.