AUD/USD slips farther below mid-0.6900s, over 2-week lows
- The USD stands tall near multi-week tops and continues exerting some pressure.
- RBA rate cut speculations do little to lend any support or stall the ongoing slide.
- Traders now look forward to the US Q2 GDP growth figures for a fresh impetus.
The Aussie remained on the defensive against its American counterpart, with the AUD/USD pair slipping below mid-0.6900s to hit over two-week lows in the last hour.
The pair extended its recent pullback from near three-month tops and remained under some selling pressure for the sixth consecutive session on Thursday amid the ongoing US Dollar bullish run to multi-week tops.
Thursday's upbeat US durable goods orders data reaffirmed expectations that the Fed is unlikely to deliver a 50 bps rate cut in July, which triggered a sharp up-move in the US bond yields and underpinned the greenback.
Adding to this, rising speculations that the RBA will move to cut interest rates soon sent yields on Australia's 10-year government bond to a record low on Friday and continued affecting negatively on the domestic currency.
Meanwhile, the China-proxy Australian Dollar failed to gain any respite from and seemed unaffected by the fact that top US negotiators are set to meet their Chinese counterparts to resume in-person trade talks on July 30-August 1.
It would now be interesting to see if the pair is able to find any buying interest at lower levels or continues drifting lower as the focus now shifts to the US economic docket - highlighting the release of advance US Q2 GDP print.
The US economic growth is expected to have decelerated to 1.8% annualized pace during the second quarter of 2019 Any positive surprise will be enough to provide a fresh lift to the USD and set the stage for a further near-term depreciating move.
Technical levels to watch