AUD/USD heavy, targets 0.7500 as risk-off intensifies

A renewed risk-off wave gripped the financial markets across Asia after the US launched military strike on Syria, following a chemical attack by the Islamic state. As a result, investors dumped risk assets such as equities, treasury yields, AUD etc., as flight to safety emerged the key theme so far.

The Aussie extends its bearish momentum for the second straight session, following increased cautiousness in the wake of the Trump-Xi Summit. Moreover, downbeat Aus AIG construction index data also collaborated to the ongoing declines seen in AUD/USD.  

The spot meanders near fresh four-week troughs reached at 0.7518, despite a minor-advance in copper prices and a rally in oil prices.

Looking ahead, markets will continue to assess the impact of the US missiles attack on Syria ahead of the next big risk event due on the card for the major in the NA session – the US payrolls data.

AUD/USD Levels to watch   

At 0.7620, the pair finds the immediate support located at 0.7500 (round number). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7488 (March lows) and below that 0.7461 (Jan 17 low). On the flip side, the immediate resistance at 0.7546 (200-DMA) above which gains could be extended to the next hurdle located 0.7562/69 (5-DMA/ Fib R1) and 0.7601 (10-DMA).