AUD/USD Current Price: 0.6694
- Australian and Chinese manufacturing PMI to be out this Monday.
- Chinese virus outbreak weighing on the Aussie as it continues spreading worldwide.
- AUD/USD dangerously close to 0.6670, break below it should trigger a steeper decline.
The Australian dollar continues to be the weakest dollar’s rival, dragged lower by the market’s dismal mood triggered by Chinese woes. The coronavirus outbreak spurred concerns about global growth as many countries are suspending flights to and from the country. Trade would likely be affected next if the situation continues. The AUD/USD pair settled around 0.6690, not far from the one-decade low set last year at 0.6670.
Early Monday, Australia will release January TD Securities Inflation, previously at 1.4% YoY, the AIG Performance of Manufacturing Index, previously at 48.2, and December Building Permits, seen down by 3.0% monthly basis. More relevant, China will release the January Caixin Manufacturing PMI, foreseen at 51.3 from 51.5.
AUD/USD short-term technical outlook
The AUD/USD pair is extremely oversold in its daily chart, although technical indicators continue heading firmly lower, suggesting sellers are not yet done. The RSI is currently at 22, a level not seen throughout the last two years, while the pair stands far below all of its moving averages. In the shorter term, and according to the 4-hour chart, a bearish 20 SMA continues to head south although now at around 0.6730, reflecting the strength of sellers. Technical indicators have stabilized near oversold readings, without signs of downward exhaustion.
Support levels: 0.6730 0.6700 0.6670
Resistance levels: 0.6770 0.6805 0.6840
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 climbs to daily highs near 1.0770 on Dollar selling
EUR/USD manages to regain extra upside traction on the back of the renewed sell-off in the Greenback, reaching fresh daily highs in the 1.0770 region, or. two-day peaks.
GBP/USD hovers around 1.2500 post-BoE
GBP/USD alternates gains with losses around the 1.2500 neighbourhood amidst extra weakness in the Dollar, while market participants continue to digest the BoE event.
Gold poised to resume its advance
XAU/USD now gathers fresh steam and advances to the highest level in many sessions north of the $2,330 mark per troy ounce on the back of further selling pressure hurting the Greenback as well as mixed US yields.
Solana meme coins TREMP, BODEN rise after Donald Trump’s pro-crypto stance
Solana-based meme coins TREMP and BODEN post nearly 125% and 7% gains on Thursday. Former US President Donald Trump says his campaign will likely accept crypto donations.
Bank of England inches one step closer to a summer rate cut
The Bank of England is undoubtedly turning more optimistic, but it’s keeping its options open amid some uncertainty surrounding the near-term inflation numbers. We still narrowly expect the first rate cut in August.