AUD/USD analysis: risk-off makes Aussie tumble

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7440

Trade war jitters, poor local and Chinese data, hit the Aussie.
AUD/USD poised to challenge 0.7411 low, headed to 0.7250.

The Aussie tumbled this past week, falling against the greenback to 0.7439 to close the week around this last. The AUD/USD pair trimmed in pretty much two days the gains that took five weeks to achieve. Dollar's strength after the imbalance between central banks retook center stage, and renewed tensions between China and the US over a trade war were behind the pair's decline. Also, local and Chinese data disappointed these days, adding pressure on the commodity-related currency. Australia won't release relevant data this week, beyond the Minutes of the latest RBA meeting next Tuesday. Technically, the pair is poised to break lower, as in the daily chart, it resumed its decline after toping at the 61.8% retracement of its latest daily decline an now nears the bottom of such slide at 0.7411, the immediate support. In the mentioned chart it closed far below all of its moving averages that present bearish slopes, while technical indicators head south almost vertically, nearing oversold readings. Shorter term, and according to the 4 hours chart, the pair is also biased lower as technical indicators head south within oversold readings and at multi-month lows with no signs of changing course, while the 20 SMA accelerated its decline and maintains an almost vertical slope after crossing below the larger ones.

Support levels: 0.7410 0.7370 0.7335

Resistance levels: 0.7480 0.7515 0.7565

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 recovers toward 0.7000 amid improving mood

AUD/USD is firming up toward 0.7000 in Asia on Tuesday, helped by improving market mood. A pause in the US Dollar rebound also aids the pair's upside. However, geopolitical risks and caution ahead of AI tech earnings report could limit the pair.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold sellers remain in control while below 21-day SMA

Gold is falling for the third straight day on Tuesday, having run into sellers on several occasions at the $4,200 level. The bullion awaits a clear trading impetus amid uncertainty about the US Federal Reserve’s interest rate outlook and looming geopolitical risks.

Ripple and Cardano face downside risk as Solana consolidates

Top altcoins, including Ripple (XRP), Cardano (ADA), and Solana (SOL), stall on Tuesday after a bearish week, suggesting a brief pause in selling pressure. The technical outlook for XRP and ADA indicates a downside bias, while SOL shows mixed signals, with the price holding above $100 as momentum eases. Ripple trades at $1.2974 at press time on Tuesday, keeping a bearish near-term tone.

Markets now see no hike in October, but inflation is still a major concern

US inflation has returned to the spotlight after the latest Consumer Price Index (CPI) and Producer Price Index (PPI) reports showed a significant acceleration in price pressures. The data raised concerns that the Federal Reserve may need to maintain restrictive monetary policy for longer, pushing interest-rate expectations higher and putting pressure on stocks and gold.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.