AUD/USD Current price: 0.7197

  • Tensions between the US and China are nowhere near an end.
  • AUD/USD bearish potential to increase on a break below 0.7170 the immediate support.

The Aussie traded accordingly to US-China trade war headlines, with the AUD/USD pair finishing the week around the 0.7200 level, barely holding above a 3-week low of 0.7191. The positive momentum triggered by the trade truce between the US and China was reversed after Canada detained Huawei CFO for his extradition to the US, accused of fraud, on fears this case will ramp up trade tensions between the two countries. The sell-off in Wall Street added to Aussie weakness despite the greenback self-weakness. Chinese data released during the weekend showed that the trade surplus in the Asian giant grew to $44.7 billion, while the trade surplus with the US almost $35.6%, as exports increased by 9.8% while imports fell by a whopping 25%. Inflation, however, fell monthly basis amid weak demand and falling oil prices, down 0.3% in November, and leaving an annual reading of 2.2%. So, the Chinese economy keeps slowing and the situation with the US is not close to an end, drawing a gloomy picture for the AUD.

The pair is technically bearish according to the daily chart, as the pair broke below the 20 and 100 SMA by the end of the week, with the largest one providing an intraday resistance at 0.7240, while technical indicators settled near their weekly lows, the RSI maintaining a strong bearish momentum, in line with further declines ahead. In the 4 hours chart, the bearish case is even stronger, as the pair finished below all of its moving averages and with the 20 SMA heading sharply, having already crossed below the 100 SMA, while technical indicators resumed their declines within negative levels after correcting extreme oversold conditions.

Support levels: 0.7175 0.7140 0.7100

Resistance levels: 0.7210 0.7250 0.7300    

View Live Chart for the AUD/USD

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


Recommended Content

Editors’ Picks

AUD/USD post moderate gains on solid US data, weak Aussie PMI

AUD/USD post moderate gains on solid US data, weak Aussie PMI

The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.

AUD/USD News

EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP

EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP

EUR/USD drove back to the top end of recent consolidation on Thursday, recovering chart territory north of the 1.0700 handle as market risk appetite regains balance heading into another US Nonfarm Payrolls Friday.

EUR/USD News

Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar

Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar

Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.

Gold News

Ethereum may sustain trading inside key range, ETH ETFs to be delayed until 2025

Ethereum may sustain trading inside key range, ETH ETFs to be delayed until 2025

Ethereum is beginning to show signs of recovery on Thursday despite a second consecutive day of poor performance in Hong Kong's spot Ethereum ETFs. Bloomberg analyst James Seyffart has also shared that a spot Ethereum ETF may not happen in the US in 2024.

Read more

FOMC in the rear-view mirror – NFP eyed

FOMC in the rear-view mirror – NFP eyed

The update from May’s FOMC rate announcement proved more dovish than expected, which naturally weighed on the US dollar (sending the DXY to lows of 105.44) and US yields, as well as, initially at least, underpinning major US equity indices.

Read more

Majors

Cryptocurrencies

Signatures