The pair is hitting a fresh low of 0.6936 on the day now as the aussie is dragged lower by poor business confidence data earlier and some notable strength in the greenback in the past hour of trading during the European morning.

That’s the lowest level the pair has traded since 24 June as sellers continue to stay in near-term control and are looking for a move towards 0.6900 ahead of Fed chair Powell’s testimony tomorrow and on Thursday.

Looking at the daily chart:

Sellers have regained momentum after having defended key resistance levels around the 100-day MA (red line) in trading last week. That halted the upside move from buyers since the middle of June and we’re now looking at a return to the downside.

As long as the key resistance levels – 100-day MA, 200-day MA (blue line), trendline resistance – all still hold, it’s hard to envisage AUD/USD breaking higher well above the 0.7000 handle.

For now though, the key risk event will be Fed chair Powell’s speech tomorrow so that will determine if the positioning seen today in the dollar will be justified.