AUD/USD: Aussie at yearly lows on trade-war concerns
|AUD/USD Current price: 0.7365
- Commodity-linked currencies among the most affected by escalating trade war concerns.
- China, EU, and Turkish retaliation to US Trump steel and aluminum tariffs spur risk-aversion.
The AUD/USD pair trades near a fresh yearly low of 0.7345 achieved today, just one pip below the one set earlier this week. The pair posted a modest advance early Asia, but as risk sentiment returned, the Aussie fell alongside with equities, as no major news came from the country today. Risk aversion dominates the FX board as trade tensions between the US and China returned, with Chinese authorities reiterating that they will fight back to the end. Wednesday, the EU announced that will start changing import duties of 25% on US products starting this Friday, while today the Turkish government imposed tariffs of $266.5 million on $1.1 billion worth of US goods, both responding to the US decision over tariffs on steel and aluminum imports.
Technically, the pair is poised to extend its decline, holding near daily lows and targeting a mid-term strong static support level, the 0.7250 region. In the 4 hours chart, the pair continues developing well below a bearish 20 SMA, while technical indicators have bounced alongside with price, but remain well into negative territory, and in fact, the RSI can't leave oversold territory. Despite oversold conditions are also clear in the daily chart, the pair has been posting lower lows and lower highs daily basis for six consecutive days, with no signs of downward exhaustion.
Support levels: 0.7345 0.7310 0.7275
Resistance levels: 0.7410 0.7440 0.7480
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