AUD/USD Current Price: 0.6765

  • Trade war concerns returned amid a cancelled visit to US farming states.
  • Australian preliminary September PMI expected to show economic weakness.
  • AUD/USD at risk of extending its decline toward sub-0.6700 levels.

The AUD/USD pair settled at 0.6765, ending the week with substantial losses, amid renewed concerns about the US-China trade relationship. The pair edged lower for a third consecutive day on Friday, earlier undermined by speculation the Reserve Bank of Australia will cut rates once again before the year-end. During the weekend, China’s state news agency reported that trade discussions in Washington were “constructive,” and that both teams will discuss the details of the next round of talks, scheduled for October. However, it seems unlikely the headline could pour cold water on the latest peak of risk aversion.

The Australian macroeconomic calendar includes the September preliminary Commonwealth Bank PMI this Monday, with the Services sector seen contracting further and the Manufacturing Index is seen barely holding in expansion territory.

AUD/USD short-term technical outlook

The AUD/USD pair has closed the week below the 23.6% retracement of its July/August decline at 0.6770, after topping around the 50% retracement of the same decline. In the daily chart, the pair is below its 20 DMA after spending most of this September above it, with the indicator now flat. The larger moving averages maintain their strong bearish slopes far above the current level, while technical indicators head south, the Momentum above its 100 line but the RSI currently at 39, all of which supports another leg lower coming. In the shorter term, and according to the  4 hours chart, the pair is technically bearish, now below all of its moving averages and with the 20 SMA crossing below the 100 SMA, while technical indicators maintain their bearish slopes despite being in overbought levels.

Support levels: 0.6735 0.6700 0.6665

Resistance levels: 0.6770 0.6800 0.6840  

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 at three-week highs on contagious optimism

EUR/USD is extending its gains above 1.1050 as the US and China are getting closer to a partial trade deal. Brexit optimism is also helping. US Consumer Sentiment beat expectations with 96 points.


GBP/USD's rally stalls in the open as weekend headlines highlight Brexit deadlock

GBP/USD is a touch softer in the open on Monday, starting off the week in the consolidation of Friday's upside extension to the highest levels since mid-summer. US and China trade talks have gained some traction in a phase 1 deal.


USD/JPY: holding on to gains amid risk-on

The USD/JPY pair jumped to 108.62, its highest since late July, as news that the US and China are progressing toward a trade deal prompted speculative interest away from safe-haven assets. The pair is technically bullish.


China officially invited Lighthizer, Mnuchin and their teams for additional trade talks in China

According to Cristina Alesci, business and politics correspondent for CNN, China has officially invited the United States (US) Trade Representative Lighthizer and Treasury Secretary Mnuchin and their teams for additional trade talks in China ahead of next month's APEC summit in Santiago.

Read more

Gold slumps below $1,480 as risk appetite continues to dominate the market

The bearish pressure surrounding the XAU/USD pair on Friday intensified in the last hour as markets continue to price a possible trade deal between the United States (US) and China.

Gold News

Forex Majors