AUD/USD Analysis: January's flash-crash low exposed
|AUD/USD Current Price: 0.6872
- Trade tensions likely to keep the Aussie under pressure.
- Break below 0.6820 should imply a mid-term bearish continuation.
The Australian dollar fell Friday against the greenback to its lowest since January´s flash-crash, touching 0.6860 to settle a handful of pips above this last. Dollar's strength against its commodity-linked rival was exacerbated by dismal Chinese data released at the beginning of the day, as Industrial Production in the country rose in May by less-than-anticipated, up by 5.0% YoY. Retail Sales in the same period were up by 8.6%, better than the market's forecast of 8.1%, but fell short of supporting the Aussie. The poor performance of worldwide equities added pressure on the commodity-linked currency, alongside persistent trade tensions. There are no macroeconomic releases scheduled in Australia or China this Monday.
The AUD/USD pair is technically bearish according to the daily chart, as it accelerated its decline after breaking below the 20 DMA Thursday hile technical indicators entered negative territory, retaining their firm downward slopes and at their lowest for this June, supporting further declines ahead. In the shorter term, and according to the 4 hours chart, technical indicators settled at extreme oversold territory having barely bounced, while the 20 SMA offers a strong bearish slope well above the current level and above the larger ones, keeping the risk skewed to the downside. A break below 0.6820 a long-term static support level, should imply a mid-term bearish continuation.
Support levels: 0.6860 0.6820 0.6775
Resistance levels: 0.6900 0.6940 0.6980
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