The Australian dollar hit new multi-month low at 0.7143 on Wednesday, on fresh weakness that emerged after short-lived rally on upbeat Australian GDP data (annualized GDP was up 3.4% in Q2 vs 2.8% f/c and 3.1% in Q1). Post-data spike to session high at 0.7217 proved to be just positioning for fresh downside as broader bears already cracked strong supports at 0.7160 zone. Stronger greenback on persisting concerns about US trade conflicts with major economies, as well as signs that the RBA will remain on hold despite growing economy, continue to weigh on Australian dollar. Eventual clear break below 0.7160 pivot would open way towards psychological 0.70 support and could target 0.6906 (07 Sep 2015 low) in extension. However, further hesitation at key 0.7160 support zone cannot be ruled out, as slow stochastic is oversold on daily chart, but limited upticks could be expected as other studies are in firm bearish setup and sentiment remains negative.
Res: 0.7200, 0.7235, 0.7256, 0.7280
Sup: 0.7143, 0.7100, 0.7000, 0.6906
