AUD/USD analysis: Aussie in trouble on escalating trade war
AUD/USD Current price: 0.7372
- Plummeting metals' prices and falling equities hurt the Aussie.
- Australian Consumer Inflation Expectations for July to be out this Thursday.
It was a really bad day for the Aussie, falling against the greenback to its lowest in over a week ever since the day started, as the latest trade-war headlines weighed on base metals, with copper falling to its lowest in over a year, and bright metals such as gold and silver nearing their recent yearly lows. While there was no clear catalyst for the latest dollar's rally, a conjunction of higher inflation at factory levels in the US, and negative news somewhere else, backed the American currency. Australian data released at the beginning of the day was quite encouraging, as the Westpac Consumer Confidence index resulted at 3.9%, a nice improvement from the previous 0.3%, while Home Loans were up 1.1% in May, against the expected -1.9%. Australian Consumer Inflation Expectations for July will be out during the next Asian session, previously at 4.2%. The 4 hours chart shows that the pair broke below all of its moving averages, while technical indicators accelerated south, now nearing their oversold readings almost vertically, supporting additional slides ahead toward the yearly low at 0.7310.
Support levels: 0.7340 0.7310 0.7280
Resistance levels: 0.7400 0.7445 0.7490
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
