Forex: AUD/USD: scope for further weakness – V.Bednarik

FXstreet.com (San Francisco) - AUDUSD hit a new 5-week low of 1.0338 in early Asia, weighed by a near 5% slump in iron ore prices and on China concerns.

Last quoted at 1.0345 ahead of the opening bells in Tokyo and Sydney, "The bearish trend continues firm," and is "aiming to break the 1.0330/40 static resistance zone," says Valeria Bednarik, Chief Analyst at FXstreet.com.

The analyst adds: "In the 4 hours chart indicators head strongly south retreating from their midlines, suggesting further slides ahead towards the 1.0260 area."

If the downtrend persists, Ms. Bednarik identifies support levels at 1.0330, 1.0300 and 1.0260, while upside rallies may find resistance at 1.0370, 1.0410 and 1.0440. Australian Building Permits for July are scheduled for release today by the Australian Bureau of Statistics at 01:30 GMT.