AUD/USD continues to slip down the rope, hits a new low below 0.74
|- The AUD/USD pings into a new low as risk aversion sends the pair steadily lower.
- A possible trade war between the US and China took a step closer to becoming reality today.
The AUD/USD managed to clip into yet another new low for the day, touching into the 0.7380 level. The pair is now trading into a 13-month low as trade tensions between the US and China spill over into a self-feeding circle of retaliatory tariffs.
The US President, Donald Trump, ordered his US trade representative to set about gathering a list of another $200 billion of Chinese goods that the US can slap tariffs on, after the Chinese responded to the initial raft of US tariffs last week with their own, targeting US agriculture products, a move the US warned would garner further tariffs.
The Reserve Bank of Australia (RBA) dropped the Meeting Minutes of their latest rate decision, and little of note was there to entice Aussie traders to hit the buy button. The central bank is set to hold steady on rates for the foreseeable future as Australian growth figures continue to miss the mark.
AUD/USD Technical Analysis
The Aussie is continuing to drift lower as risk flows from the Asia trading session seek out safe havens following the US' newest tariff threats, and trade concerns completely overpowered the RBA's lackluster report today.
AUD/USD Chart, 1-Hour
Spot rate: 0.7383
Relative change: -0.55%
High: 0.7415
Low: 0.7382
Trend: Bearish
Support 1: 0.7363 (S3 1-day pivot)
Support 2: 0.7328 (May 2017 technical bottom)
Support 3: 0.7192 (S3 1-week pivot)
Resistance 1: 0.7454 (current week high)
Resistance 2: 0.7501 (38.2% Fibo retracement level; major handle)
Resistance 3: 0.7568 (61,8% Fibo retracement level)
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