- Macro data continues to point the Aussie's nose into the low end.
- Trade war fears represent a continuous bearish presence for the AUD/USD pairing.
- Slumping growth figures from both home and abroad are sinking the AUD, with China's current slowdown impeding the Aussie.
AUD/USD continues to skid across the rails at the key 0.7200 handle, constrained by the 50-day simple moving average on the charts while broader market sentiment sees the Aussie as the popular victim of choice to sell when US-China trade tensions make themselves visible.
Australian domestic economic data continues to disappoint across the board, and the Reserve Bank of Australia's (RBA) rising concerns with the wobbly Aussie housing market are proving to be well-founded after Tuesday's Housing Price miss, steepening a contraction from the previous quarter's -0.7% and slipping to -2.5% heading into the year's end. With Australia's domestic engine closely tied to China's demand for goods, the US-China trade war also poses a significant risk, and steadily-deflating trade balance, import, and export datasets from China are cause for fear for Aussie traders as well, as a contracting Chinese economy threatens to topple Australia's already-weak growth figures.
Data for the rest of this week remains thin except for a mid-tier RBA Bulletin due early on Thursday, but with trade war headlines once again making their way across the wires on a daily basis, the AUD can be expected to continue facing bearish headwinds for the immediate future, unless a broadbase correction in the greenback sees the Aussie pick up some charity-bidding in the larger FX space.
AUD/USD Technical Levels
AUD/USD
Overview:
Today Last Price: 0.72
Today Daily change: 14 pips
Today Daily change %: 0.195%
Today Daily Open: 0.7186
Trends:
Previous Daily SMA20: 0.7265
Previous Daily SMA50: 0.7184
Previous Daily SMA100: 0.7235
Previous Daily SMA200: 0.7407
Levels:
Previous Daily High: 0.7227
Previous Daily Low: 0.7174
Previous Weekly High: 0.7394
Previous Weekly Low: 0.7192
Previous Monthly High: 0.7345
Previous Monthly Low: 0.7072
Previous Daily Fibonacci 38.2%: 0.7207
Previous Daily Fibonacci 61.8%: 0.7194
Previous Daily Pivot Point S1: 0.7164
Previous Daily Pivot Point S2: 0.7143
Previous Daily Pivot Point S3: 0.7112
Previous Daily Pivot Point R1: 0.7217
Previous Daily Pivot Point R2: 0.7249
Previous Daily Pivot Point R3: 0.727
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD favours extra retracements in the short term
AUD/USD kept the negative stance well in place and briefly broke below the key 0.6400 support to clinch a new low for the year on the back of the strong dollar and mixed results from the Chinese docket.
EUR/USD now shifts its attention to 1.0500
The ongoing upward momentum of the Greenback prompted EUR/USD to lose more ground, hitting new lows for 2024 around 1.0600, driven by the significant divergence in monetary policy between the Fed and the ECB.
Gold aiming to re-conquer the $2,400 level
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
Bitcoin price defends $60K as whales hold onto their BTC despite market dip
Bitcoin (BTC) price still has traders and investors at the edge of their seats as it slides further away from its all-time high (ATH) of $73,777. Some call it a shakeout meant to dispel the weak hands, while others see it as a buying opportunity.
Friday's Silver selloff may have actually been great news for silver bulls!
Silver endured a significant selloff last Friday. Was this another step forward in the bull market? This may seem counterintuitive, but GoldMoney founder James Turk thinks it was a positive sign for silver bulls.