AUD/USD analysis: no relief for Aussie, 0.6826 in the cards

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7191

Tensions with China and global trade woes hit hard the Aussie.
Australian TD Securities Inflation for August to be out this Monday.

The AUD/USD pair fell to a fresh yearly low of 0.7175 and settled a handful of pips above this last, with the Aussie being the worst performer against the greenback. The Australian currency was undermined by a combination of factors, which include local political turmoil, escalating global trade tensions, and falling base metals. At the same time, tensions between the country and China rose as this last is denying visas to Australian journalists while Australia is banning China's Huawei cells from its mobile network market. The recovery in US equities at the end of the way wasn't enough to offset the negative sentiment toward the Aussie. The country will start the week with the release of August TD Securities Inflation for August, previously at 2.0% YoY. The AUD/USD pair trades at levels last seen in January 2017, and the daily chart shows that selling interest remains strong, as it plunged after breaking below a now bearish 20 DMA, also well below the larger ones, while technical indicators entered negative territory with strong downward slopes. The next relevant support comes at the 0.7150 region, where the pair bottomed multiple times by the end of 2016 and the beginning of 2017, also with lows from late 2016, with a break below it exposing 0.6826, 2016 low. In the 4 hours chart, the pair has fallen over 100 pips below a now vertical 20 SMA, which broke below the 100 SMA, while technical indicators posted modest bounces, with the RSI currently at 26, falling short of suggesting an upward corrective movement ahead.

Support levels: 0.7150 0.7120 0.7090

Resistance levels: 0.7215 0.7260 0.7300

View Live Chart for the AUD/USD

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.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold sticks to gains, eyes $4,450 as USD remains depressed ahead of US inflation data

Gold turns higher following an intraday dip to sub-$4,400 levels, and moves further away from a one-week low touched the previous day. The commodity, however, remains below the $4,450 pivotal point as bulls seem hesitant ahead of US inflation figures. The US Producer Price Index report will be published later today, while the US Consumer Price Index is due on Friday.

Raydium's rally signals trend reversal amid network growth, buyback

Raydium maintains a firm bullish tone, posting nearly 9% gains, and extending its 41% rally from Sunday. Solana-based Decentralized Exchange is witnessing a surge in network activity and growth amid new token launches. The technical outlook for Raydium signals a potential upside toward $1.50 as momentum holds firm despite overbought conditions.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.