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AUD/USD extends losses below 0.8000

FXStreet (Córdoba) - AUD/USD broke below the 0.8000 support level and extended losses to fresh 5 ½-year lows as growing expectations the RBA might cut interest rates on Feb 3 are weighing on the Aussie.

Better-than-expected Chinese manufacturing data didn't help the Australian dollar, which accelerated through the psychological level to a low of 0.7949, last seen July 2009. At time of writing, AUD/USD is trading at 0.7960, recording a 0.81% loss on the day and on track to post a weekly fall after two weeks of recoveries.

AUD/USD levels to watch

In terms of technical levels, immediate supports are seen at 0.7945, 61.8% Fibo of 0.6006 (Oct 2008 low) to 1.1079 (July 2011 high), 0.7923 (Jul 15 2009) and 0.7900 (psychological level). On the flip side, resistances could be faced at 0.8000 (psychological level), 0.8050 (Jan 23 high) and 0.8077 (Jan 21 low).

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