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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD breaks below 1.0800 amid data imbalances, risk-off

A disappointing German ZEW Survey, better than expected US data and looming coronavirus concerns are pushing EUR/USD lower. 1.0770 next critical support.

EUR/USD News

GBP/USD bounces above 1.30 as markets shrug off wage figures

GBP/USD is trading above 1.30 as investors ignore weak UK wage figures and Brexit concerns once again. Coronavirus headlines are eyed.

GBP/USD News

Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. 

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors

Cryptocurrencies

Signatures