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.

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