AUD/USD hits fresh lows below 0.7400 on risk aversion

• AUD/USD broke below 0.7415 and extended the decline, trimming Friday’s gains.
• Aussie weakened as Wall Street dropped further with the Dow Jones hitting the lowest since early May.

The AUD/USD pair broke below 0.7415 and fell to 0.7395, reaching a fresh daily low. The pair was hovering around 0.7400, down 35 pips from Friday’s close.

The negative tone still prevails as equity prices drop further in the US. The Dow Jones was down 1.47% at 24,220 the weakest in more than a month. The Aussie was among the worst performer on Monday. The greenback was modestly higher against commodity and emerging market currencies but it was falling versus its European rivals.

Data released today in the US, showed that New Home Sales surprised to the upside in May, expanding 6.7%, to 689K units, while the Chicago Fed National Activity Index came in on the below expectations at  -0.15.

AUD/USD Technical levels

On the upside, resistance levels might now be seen at 0.7410/15 (Asian session low), 0.7440/45 (Jun 22 high) and 0.7500. On the flip side, support might lie at 0.7390, 0.7340/45 (Jun 19 & 21 low) and 0.7300.