AUD/USD Current Price: 0.6862

  • PM Morrison surprise victory weighs negatively in the Australia-China relationship.
  • AUD/USD fell to its lowest since January flash-crash amid trade tensions and dollar's strength.

The Australian dollar remained under selling pressure at the end of the week, amid trade tensions and economic growth concerns, falling against the greenback to 0.6864, its lowest since the early January flash crash. US-Sino tensions reached another zenith following news that China was planning to suspend trade negotiations if the US fails to show "sincerity" in the next round of talks. Meanwhile, the market believes that the RBA is close to cutting the cash rate after keeping it at record lows for almost three years, further denting demand for the AUD in the longer run. Wall Street edged lower Friday after a positive start to the day, also adding pressure on the commodity-linked currency. Australia went to the polls this Saturday, with an unexpected victory of PM Scott Morrison, the leader of the ruling coalition. The news could impact the Aussie negatively, as the ruling party doesn't have a good relation with China. Hopes were that a Labour victory would have improved such relationship, and in fact, polls ahead of the election suggested a victory from the opposition.  There are no macroeconomic data scheduled in Australia this Monday.

From a technical point of view, the pair is extremely oversold, yet still bearish in the daily chart, as it has fallen for a fifth consecutive day. In the mentioned chart, the pair is far below bearish moving averages, with the 20 DMA accelerating well above the current level. Technical indicators maintain their sharp downward slopes, despite being in oversold territory. Shorter term, and according to the 4 hours chart, the pair is also headed lower, as a strongly bearish 20 SMA keeps attracting selling interest, while the Momentum indicator lacks directional strength, holding near daily lows, while the RSI resumed its decline, currently at 24. The next relevant support and the possible bearish target is 0.6826 January 2016 monthly low.

Support levels:  0.6860 0.6825 0.6775

Resistance levels: 0.6890 0.6930 0.6965    

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD recovers post-Fed losses, awaits data

EUR/USD is trading close to 1.1050, up from the lows it fell to on Wednesday after the Fed cut rates but signaled no new moves are imminent. Markets are digesting the decision and eyeing several US figures.

EUR/USD News

GBP/USD stabilizes below 1.25 ahead of UK retail sales, BOE

GBP/USD is trading below 1.25, consolidating its losses after the US Fed cut rates as expected and indicated a pause. The Bank of England is set to leave rates unchanged. Beforehand, UK retail sales are due out.

GBP/USD News

USD/JPY keeps losses below 108.00 as BOJ disappoints the doves

USD/JPY keeps the losses below 108.00, as the Japanese Yen remains on the front foot in reaction to the Bank of Japan's (BOJ) status-quo that came in as a disappointment for the doves. 

USD/JPY News

Forex Today: Dollar surrenders post-Fed gains, Aussie and Bitcoin tumble, BOE in focus

The US dollar is off its highs against major pairs as markets digest the Federal Reserve's decision. The Fed cut rates by 25 basis points as expected and the dot-plot signaled no further cuts this year or the next.

Read more

Gold: Indecisive market, focus on today's close

Gold is currently trading at $1,480 per Oz, representing 0.21% drop on the day. On Wednesday, the yellow metal witnessed two-way business before ending the day with moderate losses at $1,494.

Gold News

Forex Majors

Cryptocurrencies

Signatures