AUD/USD sank to its lowest levels since January 4th in early trading on Wednesday, after Australian GDP growth came in at 0.2 percent in the fourth quarter, missing expectations of 0.3 percent and following a disappointing 0.3 percent in the previous three-month period.
Concerns over an economic slowdown reflected in the GDP figures supported market expectations that the Reserve Bank of Australia (RBA) may ease policy to stimulate the economy in 2019.
At their board meeting on Tuesday, the RBA held interest rates at a record-low of 1.50 percent for the for 31st month. The central bank stated that faltering property markets and weak wages growth remain concerns.
Meanwhile, analysts also anticipate a possible dovish slant at the ECB meeting on Thursday, with a potential delay in raising rates until next year.
Looking at the weekly chart above we can see that AUD/USD has been in a down trend since January of 2018 and that there is little in the way of technical support beneath the 0.7027 level.