AUD/USD Analysis: US-China trade jitters weigh on the Aussie
|AUD/USD Current Price: 0.6733
- Disappointing Australian data and tensions between the US and China pressured the pair.
- Equities failed to sustain intraday gains after trade-related headlines were digested.
- AUD/USD set to prove buyers’ determination around the 0.6700 figure.
The AUD/USD pair fell to the 0.6730 price zone, as trade-related tensions weighed on the Aussie at the beginning of the day, later weighed by broad dollar’s weakness. The greenback recovered on encouraging US-China trade news, as the Chinese Commerce Ministry said that China is ready to do a deal on the parts of the negotiations both sides agree upon. The news didn’t come as a surprise, as it’s pretty much the same that Premier Liu said earlier in the day, although reformulated positively. China is still unwilling to discuss commitments on reforming local industrial policy or government subsidies. Wall Street retreated from daily highs, closing the day marginally lower and keeping the pair under pressure.
Australia released at the beginning of the day, the AIG Performance of Construction Index, which fell in September to 42.6 from 44. 6 in August. During the upcoming Asian session, Australia will release the NAB’s Business Conditions Index and the NAB’s Business Confidence Index, both for September.
AUD/USD short-term technical outlook
The AUD/USD pair is heading into the Asian opening with a weak tone, poised to extend its decline, as, in the 4 hours chart, it is settling below its 20 SMA while the 100 SMA crosses below the 200 SMA, far above the current level. Technical indicators head firmly lower, the Momentum still holding above its 100 level and the RSI currently at 46, this last anticipating another leg lower, particularly if the pair breaks below 0.6730.
Support levels: 0.6730 0.6700 0.6670
Resistance levels: 0.6770 0.6805 0.6840
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