AUD/USD Current Price: 0.6536
- Aussie weighed by the poor performance of equities, dismal market’s mood.
- Tensions between Australia and China likely to set the tone for the pair this week.
- AUD/USD could ease in the short-term, but the risk of a steep decline seems limited.
The AUD/USD pair settled at 0.6535, easing on Friday for a second consecutive day. Tensions between Australia and China weighed on the Aussie, amid Australia backing an investigation on the origins of COVID-19 and condemning Chin’s move to undermine Hong Kong’s autonomy through a strict national security law. Firmer gold prices kept the downside limited for the pair, which anyway was unable to hold above the elusive 0.6600 threshold. China banned imports from Australian beef and imposed punitive tariffs on Australian barley, which also hit investor’s confidence in an economic recovery.
The Australian macroeconomic calendar will remain empty at the beginning of the week, with the focus on the country’s relationship with China.
AUD/USD short-term technical outlook
The AUD/USD pair has posted a weekly gain, despite easing at the end of it, and after posting a fresh 2-month high of 0.6615. The daily chart shows that the pair is losing its bullish potential, but it’s also far from bearish, as it holds above its 20 and 100 SMA, both converging at 0.6495, the immediate support level. Technical indicators, in the meantime, have turned lower but hold above their midlines. In the 4-hour chart, however, the pair is neutral-to-bearish, as the pair has settled below a now flat 20 SMA, while the Momentum indicator maintains its bearish slope within negative levels.
Support levels: 0.6495 0.6460 0.6420
Resistance levels: 0.6580 0.6615 0.6650
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.