According to analysts from the National Australia Bank (NAB), the AUD/USD has given an "ominous" signal after dropping below important trendline support below 0.7350. NAB notes that they are looking for the US to go ahead with another $200 billion in tariffs on China, and this recent fall comes ahead of confirmation of the new tariffs, a move that "bodes particularly poorly".
NAB went on further to note that given the current bearish environment, it leads them "to generate expectations for a revisit to … lows below 0.69," but it all hinges on US-China tariffs: "If Trump doesn't pull back on the next phase of tariffs against China, this now looks increasingly likely".
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.