Amid a negative turn in risk sentiment and the kiwi also stumbling lower post-RBNZ, the aussie is finding it tough to stay afloat with AUD/USD now down 0.6% to 0.6570 on the day.
The pair is now contesting the March and April lows at around the 0.6563-73 region and a break below that could lead to a steeper drop in price in the short-term. This comes after a consolidation period of sorts since the retreat in February and early March, which saw the pair stick around 0.6600 to 0.6800 mostly.
The topside momentum was capped by the 100-day moving average (red line) and that proved to be yet another hindrance for buyers earlier this month before the latest downturn.
And right now, with the dollar gathering momentum while equities are starting to get a little shaky, AUD/USD might be in for a rough one especially if the technicals also give way.
Looking elsewhere, iron ore getting routed and copper breaking down are also negative developments for the aussie in the commodities space.
Going back to the chart above, a break below the support region will put into focus the 61.8 Fib retracement level at 0.6547 next but I would wager we could see an acceleration towards 0.6500 at least on any break now.
