AUD/USD retreats from 0.6680 as the markets await Trump’s conference on China
|- AUD/USD fails again at 0.6680 resistance area and retreats to 0.6620.
- Australian dollar loses ground with the market awaiting Trump's conference on China.
- FX analysts at Credit Suisse see the Aussie capped below 0.6706.
The Australian dollar has failed again to break the resistance level at 0.6680 and the pair has retreated to levels near 0.6600 as risk appetite plunged ahead of US President Trump’s conference on China.
Aussie retreats on concerns about US-China tensions
The risk-sensitive AUD/USD has retreated from 2, ½ highs earlier on Friday, as market sentiment deteriorated during the US trading session. Market optimism triggered by the re-opening of the main economies has faded today, with the investors holding their breath ahead of Trumps conference.
President Trump has been threatening this week with a strong response to China's new security law to increase control over Hong Kong. This verbal escalation has boosted investors fear that the tensions between the world two largest economies might affect international trade, hampering the post-coronavirus recovery.
AUD/USD expected to remain capped below 0.6659/0.6706 – Credit Suisse
The FX analysts’ team at Credit Suisse see the current uptrend highly likely to be capped below 0.6706: “We look for the 0.6659/6706 area to cap and see weakness taking over again in due course. With this in mind, we see support initially at 0.6610, then 0.6538, ahead of the late May lows and 21-day exponential average at 0.6507/06, where we would expect to see fresh buying at first.”
AUD/USD key levels to watch
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.