AUD/USD and Copper both hit one-week low

The weakness in copper and other commodity prices is keeping the Aussie on the back foot amid broad based US dollar weakness.

The AUD/USD fell to a low of 0.7653 (lowest since March 15), while copper prices dropped to a one-week low  as talks to resolve a strike at the world's biggest copper mine in Chile were set to resume. Another huge mine - Freeport-McMoRan's Indonesia operation is set to start production as well.

The Aussie dollar is feeling the heat of the losses in the commodity prices. Moreover, the American dollar was offered heavily against the GBP and the EUR on Tuesday, although the broad based weakness did little to help the AUD/USD pair.

RBA’s Debelle, during his speech in Singapore, refrained from commenting on the economy and monetary policy. Thus, Copper, Gold and other commodities could continue to guide the AUD pairs. The USD side of the story could be influenced by the Treasury yields, which are currently down close to two basis points.

AUD/USD Technical Levels

The spot was last seen trading around 0.7660. A break below 0.7633 (10-DMA) could yield a sell-off to 0.76 (zero figure), under which a major support is seen at 0.7556 (Mar 2 low). On the higher side, breach of 0.7663 (Mar 17 low) would shift risk in favor of a re-test of 0.77 (zero figure) and 0.7720 (Mar 15 high).