AUD/USD: below Friday's low but downside limited

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7276

US-China tensions weighed on the Aussie at the weekly opening.
Broad US Dollar's weakness and stable equities keeping the pair afloat.

The AUD/USD pair gapped lower at the weekly opening, as the Chinese Yuan appreciated on the back of trade war headlines. The latest batch of mutual tariffs between the US and China came into effect, while China rejected to resume trade talks with the US, spurring some concerns. Nevertheless, US President Trump has already menaced that he will continue with tariffs to cover the total of imported goods from China, and could trigger duties on $627B on Chinese goods, taking off from the equation the surprise factor. Being Australia a close trade partner to China, these kind of news always weigh on the Aussie.

The pair fell to a daily low of 0.7252, meeting buyers at the key static support area, also the 61.8% retracement of the latest daily slump. The pair already filled the opening gap after peaking at 0.7281 during Asian trading hours, now needing to surpass 0.7290 to gain upward traction. Dollar's weakness prevails across the FX board, helping the pair to remain afloat, albeit ranging due to the lack of progress in commodities and equities.

The pair offers a neutral-to-positive stance according to the 4 hours chart, as technical indicators are currently resting above their midlines, trying to regain some upward slopes but without enough strength at the time being. In the same chart, the price is currently battling with a bullish 20 SMA while above the larger ones, also supporting a bullish continuation, more likely on an upward acceleration through the 0.7290 price zone. Given dollar's ongoing weakness a decline seems unlikely unless risk-aversion takes over equities, something that could drag the Aussie lower.

Support levels: 0.7250 0.7220 0.7190

Resistance levels: 0.7290 0.7335 0.7370

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 edges higher above 0.7050 as hot CPI lifts RBA rate hike odds

The AUD/USD pair gathers strength to near 0.7055 during the Asian trading hours on Thursday. The Australian Dollar edges higher against the US Dollar as hotter inflation data bolsters expectations of Reserve Bank of Australia rate hikes. The US September Personal Consumption Expenditures inflation report will be in the spotlight later on Thursday.

USD/JPY retakes 158.00 as USD stalls the post-FOMC corrective slide

USD/JPY attracts some dip-buyers during the Asian session on Thursday, climbing back above 158.00 as the US Dollar reverses part of the post-FOMC pullback from a two-week high. Bulls, however, await key US macro data – the Advance Q3 GDP and the PCE Price Index – before positioning for further gains. Focus will then shift to the crucial BoJ policy update on Friday amid firming expectations for a December rate hike.

Gold drops to two-day lows near $4,000

Gold leaves behind the recent three-day positive streak and faces renewed selling pressure near the $4,000 mark per troy ounce on Thursday. The yellow metal’s daily decline comes amid the firm performance of the US Dollar and mixed US Treasury yields, while crude oil prices remain on the back foot.

Top Altcoins Price Forecast: Ripple and Solana under pressure as Hyperliquid recovers

Ripple is down over 2% on Thursday, extending losses below $1.30 and capped below crucial moving averages. Solana drops 2% so far, testing its 200-day EMA and the $100 psychological level amid mounting selling pressure.

BoJ preview: Hawkish hold

Having hiked rates by 25bp to 1.25% in September, the central messages from the BoJ were largely similar; upside price risks remained, real interest rates were still negative and further policy rate hikes should be expected.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.