AUD/USD analysis: testing 2018 lows, poised to break lower

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7414

Australian dollar suffering the most of US-China trade war.
The poor performance in equities adds to the pair's weakness.

The Aussie was among the worst performers at the beginning of the week, hurt by concerns about the escalating trade war between the US and China, as the Australian economy relies on exports, mostly to this last. The AUD/USD pair flirted with the yearly low of 0.7411 posted last May and heads into the Asian opening barely holding above the level. During the upcoming Asian session, Australia will release the Q1 House Price Index, expected to have fallen 1.0% from a previous 1.0% gain. More relevant, the RBA will release the Minutes of its later meeting, which may offer additional insights into the cautious wording over the international backdrop. The pair is markedly bearish, down for a third consecutive day and further retreating from a major Fibonacci resistance. In the 4 hours chart, the 20 SMA heads south almost vertically well above the current level and moving away from the larger ones. Technical indicators in the mentioned chart remain at oversold levels, with the RSI resuming its decline, currently at 23, signaling a bearish breakout ahead.

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.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.