The Australian Dollar took further casualties on Tuesday and slipped to a fresh eight-month low against the greenback at US$0.7298.
On the COVID-19 front, new cases are rebounding in the U.S. as the COVID-19 Delta variant spreads, largely among the unvaccinated.
According to CDC data, the U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago.
The Reserve Bank of Australia released the minutes from its July 6 meeting earlier Tuesday and reiterate their rejection of the rate hike before 2024 while saying, “They will not increase cash rate until actual inflation is sustainably within 2-3% target range.”
On Wednesday, Australia June Retail Sales missed the -0.7% forecast and came in at -1.8%.
Technically, as the market participants keep their eyes on the COVID-19 Delta variant updates and other risk-related headlines, we could see further losses.
However, the downside target is ‘wide’ as it holds between US$0.7210 to US$0.7260, which expects a bullish response.
The resistance is located from US$0.7370-80.
Viewing the daily chart, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator supports a negative signal but is extremely oversold.
Meanwhile, the Moving Average Convergence Divergence (MACD) holds a negative signal.
The Average Directional Movement Index (ADX) trend indicator supports the presence of a bearish trend.