AUD/USD breaks below 0.8000 as USD soars

The greenback rose sharply during the American session boosted by expectations about Trump’s tax reform plan. No details have emerged so far but the administration is showing determination in going forward. 

AUD/USD started to slide after being unable to break above 0.8040 not even after the release of a lower-than-expected US PPI report. When the greenback gained momentum the pair dropped to test 0.8000 and after it broke lower, bottomed at 0.7972, the lowest level since last Thursday. 

The aussie continues to retreat against the US dollar from the highest level since May 2015 that reached last Friday at 0.8123. So far, during the week AUD/USD has fallen 75 pips that is the worst weekly performance since July. 

US PPI: Core inflation maintains trend - Wells Fargo  

U.S. House Speaker Ryan: Goal is to have tax reform enacted into law by year's end

Levels to watch 

To the upside, the 0.8000 handle is now the first resistance followed by 0.8040/45 (daily high) and 0.8057 (Sep 11 high). On the flip side, support levels could be seen at 0.7960 (Sep 6 low), 0.7940 (Sep 4 low) and 0.7920 (Sep 1 low).