AUD/USD Current Price: 0.7477
- Australian Retail Sales expected at 0.7% in May, according to preliminary estimates.
- Gold prices plummeted, dragging alongside the Australian currency.
- AUD/USD closed at its lowest for the year, could extend its decline in the near-term.
The AUD/USD pair settled at 0.7477, its lowest for this year, as demand for the American currency coupled with falling stocks to the detriment of the Australian dollar. The absence of fresh Australian data and plummeting gold prices added to the bearish case, as the bright metal fell to 1,760.87 a troy ounce, its lowest in almost two months.
Over the weekend, news indicated that Australia would take China to the World Trade Organization over Beijing's imposition of tariffs on the country's wine. The industry exports plummeted from about $1.1 billion to just $20 million in the last months and it is part of multiple measures taken by the Chinese government against Australian products after the latter supported an investigation over the origins of COVID-19. Data wise, Australia will publish the preliminary estimate of May Retail Sales at the weekly opening, foreseen up 0.7% MoM.
AUD/USD short-term technical outlook
The AUD/USD pair daily chart shows that the pair has broken below all of its moving averages, accelerating its decline after piercing the 200 SMA, now providing dynamic resistance around 0.7550. In the meantime, technical indicators head firmly south despite developing in oversold readings, without signs of bearish exhaustion. The picture is quite alike in the 4-hour chart, with technical indicators heading lower in extreme oversold readings, as the pair develops far below bearish moving averages.
Support levels: 0.7460 0.7420 0.7375
Resistance levels: 0.7510 0.7550 0.7590
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.