China-US heat-up in tariff threats keeps risk sentiment dented, weighing on the antipodeans.
Technical indicators are biased lower. is weak below 50 levels and Stochs are biased lower.
The pair finds strong support at 1.0615, we see weakness accentuate on break below.
Next major support below 1.0615 lies at 1.0567 (78.6% Fib) ahead of 1.0475 (88.6% Fib)
Focus now on Australia HIA New Home Sales figures for March and a speech from RBA Assistant Governor Kent due later this week for further impetus.
Support levels - 1.0615 ( ), 1.0567 (78.6% Fib), 1.0475 (88.6% Fib)
Resistance levels - 1.0675 (5-DMA), 1.07, 1.0721 (61.8% Fib)
Good to go short on break below 1.0615, SL: 1.0675, TP: 1.0570/ 1.05/ 1.0475
Next bear target lies at 1.0485 (major trendline). Violation there could see further weakness.
Focus this week will be RBA Lowe's speech on Wednesday after last week's dovish showing from the RBA.
On the data front we have Australia’s business confidence, consumer sentiment and home loan approvals which could impact price action.