AUD/USD slides further below 0.7900, hits 1-month lows

The AUD/USD pair failed to hold above 0.7900 and dropped further amid a stronger US dollar across the board. It bottomed at 0.7868, the lowest since August 25. 

At the moment it trades at 0.7875/80, down 0.70% for the day. It is falling for the third time out of the last four days as it continues to slide after being unable to hold on top of the 0.8030 zone. 

A rally of the greenback sent the AUD/USD to the downside. The US Dollar Index reached 92.99, the highest level since the beginning of the month. The upside move started last week after the FOMC meeting. Today it could have received an impulse from US data. The S&P Case Shiller Index rose 5.8% on a yearly basis in July while the Richmond Fed Manufacturing Index climbed to 19 in September from 14, above market expectations. Now traders await Janet Yellen speech. 

Richmond Fed: Composite manufacturing index rose from 14 to 19

US: Sales of new single-family houses in Aug were 560,000, 3.4% below July

AUD/USD Technical levels 

To the upside, resistance levels might now be seen at 0.7905 (last week low), 0.7925 (Sep 25 low) and 0.7945/50 (daily high). On the flip side, support could be located at 0.7865 (Aug 24 low), 0.7835/40 (Aug 11 low) and 0.7805 (Aug low).