AUD/USD keeps falling on Australian politics, 0.7250 on sight
|- Australian political turmoil, looming US tariffs deadline knocks-off the Aussie.
- Technical set up points to easing upward momentum, as corrective rally fades.
The bearish momentum in the AUD/USD pair regained strength in the Asian trades this Thursday, as the Aussie was heavily sold-off into ongoing Australian political turmoil.
The political climate down under deteriorated on reports that the country’s PM Turnbull will not contend leadership vote, as heads into a second leadership challenge later today amid a lack of support. Also, the news that the Australian Finance Minister Cormann tendered his resignation, added to the political woes and exacerbated the pain in the Aussie.
The Australian political crisis fuels speculations that the Reserve Bank of Australia (RBA) could keep rates on hold for a longer period than markets’ expectations. Further, the sentiment around the higher-yielding also remains weighed down by the looming US tariffs on the Chinese goods that take effect on Thursday, as the US seeks to collect 25% duties on China’s imports.
Looking ahead, all eyes will remain on the US-China trade developments and US dollar price-action until the releases of the US manufacturing PMI and new home sales data, which may offer some short-lived trading impetus. Also, in focus remains the Day 1 of the annually held Jackson Hole Economic Policy Symposium for further momentum on the prices.
AUD/USD Technical Levels
Resistances: 0.7328 (5-DMA), 0.7350 (psychological levels), 0.7377 (50-DMA).
Supports: 0.7253 (Aug 17 low), 0.7200 (round number), 0.7162 (Jan 2017 lows).
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.