AUD/USD Current price: 0.7691
- Aussie still pressured by trade war fears and a mute RBA.
- AUD/USD poised to retest December 2017 low at 0.7501.
The AUD/USD pair remained lifeless this Tuesday, confined to a tight range around the 0.7700 level, but managed to extend its decline to a fresh 2018 low of 0.7678, having topped daily basis up to 0.7720. The early impulse was triggered by positive news coming from Australia, as the House Price Index for the last quarter of 2017 beat expectations, up in the three months to December by 1.0%, well above the 0.0% expected, while the annual reading resulted at 5.0%, below the previous 8.3% but beating the expected 3.9%. The Minutes from the latest RBA's meeting didn't add something new to what the market already knew, reiterating that low rates are helping lowering unemployment and lifting inflation, while the economic recovery will remain gradual. The pair is down for a fourth consecutive day and seems that the decline could continue, as it continues sliding below the 61.8% retracement of the December/January rally. In the 4 hours chart, the price is well below a bearish 20 SMA, currently at around 0.7720, while in the same chart, the Momentum aims higher below its 100 level as the RSI holds flat around 30. The pair has scope to extend its decline down to 0.7500, where it bottomed last December, as long as it remains below 0.7740, the mentioned Fibonacci level.
Support levels: 0.7665 0.7630 0.7580
Resistance levels: 0.7700 0.7740 0.7775
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to marginal gains above 1.0750
EUR/USD trades in positive territory above 1.0750 in the second half of the day on Monday. The US Dollar struggles to find demand as investors reassess the Fed's rate outlook following Friday's disappointing labor market data.
GBP/USD edges higher toward 1.2600 on improving risk mood
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold climbs above $2,320 as US yields push lower
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Three fundamentals for the week: Two central bank decisions and one sensitive US Premium
The Reserve Bank of Australia is set to strike a more hawkish tone, reversing its dovish shift. Policymakers at the Bank of England may open the door to a rate cut in June.