AUD/USD struggles near 1-month lows, below 0.7100 handle
| • RBA cuts its growth forecasts and reinforces this week's dovish shift.
• Fresh US-China trade concerns further add to the recent selling bias.
The AUD/USD pair remained under some selling pressure on Friday and dropped to over one-month lows during the Asian session, albeit has managed to bounce of few pips thereafter.
After yesterday's directionless trading action within a narrow trading range, the pair met with some fresh supply on the last trading day of the week after the RBA slashed its economic growth forecasts. The downward revision reinforced the central bank's shift from its long-standing tightening bias earlier this week and kept exerting some downward pressure on the domestic currency.
Meanwhile, concerns over the US-China trade disputes reemerged after the US President Donald Trump confirmed that he will not meet with China President Xi Jinping before the March 1 tariff deadline and further dented the already weaker sentiment surrounding the China-proxy Australian Dollar.
Adding to this, the continuation of the recent US Dollar rally to a near two week high further compounded the bearish pressure and collaborated to the pair's intraday slide to 0.7061, albeit oversold conditions on hourly charts now seemed to hold traders from placing any fresh bearish bets and seemed to be the only factor lending some support.
It would now be interesting to see if the pair is able to attract any meaningful buying interest or bears maintain their dominant position on the last trading day of the week and amid absent relevant market moving economic releases from the US.
Technical levels to watch
AUD/USD
Overview:
Today Last Price: 0.7083
Today Daily change %: -0.28%
Today Daily Open: 0.7103
Trends:
Daily SMA20: 0.718
Daily SMA50: 0.7161
Daily SMA100: 0.7171
Daily SMA200: 0.7285
Levels:
Previous Daily High: 0.712
Previous Daily Low: 0.7088
Previous Weekly High: 0.7296
Previous Weekly Low: 0.7138
Previous Monthly High: 0.7296
Previous Monthly Low: 0.6684
Daily Fibonacci 38.2%: 0.71
Daily Fibonacci 61.8%: 0.7108
Daily Pivot Point S1: 0.7087
Daily Pivot Point S2: 0.7072
Daily Pivot Point S3: 0.7055
Daily Pivot Point R1: 0.7119
Daily Pivot Point R2: 0.7136
Daily Pivot Point R3: 0.7151
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.