FXStreet (Guatemala) - Despite a slight relief on the PBoC's action, AUD/USD was unable to hold onto gains and was hammered on a drop in metal prices and commodities in general and oscillates with a bearish bias at the 0.7200 level to start the week.
The test of the 200 SMA on the hourly chart at the end of last week was very short-lived and the price fell through the 20 SMA like a knife through butter on the same time frames camping out on the 0.7200 level moving in a sideways chop from that point on in a very narrow range, losing over 280 pips and back to pre PBoC prices and the early Asian Friday rally.
The week ahead is big in the US with a series of data and events such as Durable Goods and the FOMC, while we also look forward to Aussie CPI's. It is widely expected that the Fed will stay on hold and market looks for an uptick in Aussie inflation year on year.
AUD/USD levels
Technically, the 0.7385 Fibo retracement guards the 0.7367 2014-2015 downtrend and the August high at 0.7439. The psychological 0.7200 level is first stop before the 0.7180 support. Any daily closes below here opens up the 0.7000 target.
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