AUD/USD nears 23.6% Fibo support

Aussie continued losing ground in Europe after RBA warned about AUD strength, taking the AUD/USD pair lower to near 0.7512 (23.6% of Jan 20 low – Mar 31 high).

Is AUD tracking oil?

Brent oil set multi-year low on Jan 20, which was followed by a recovery that lasted till last week. Sell-off in AUD/USD also ran out of steam on Jan 20 and the corrective rally came to an end last week.

Hence, it appears the currency is tightly correlated with oil prices. Moreover, cost of production of base metal does get influenced by gyrations in oil. The focus now is on the US ISM non-manufacturing release and oil price movement.

AUD/USD Technical Levels

The bird currently hovers around 0.7535. Acceptance below .7512 (23.6% of Jan 20 low – Mar 31 high) would open doors for 0.7477 (Mar 24 low). On the higher side, a break above 0.7570 (hourly chart hurdle) would expose 0.7595 (hourly 200-MA).