AUD/USD bears back in control in early Asia open, eye test of 0.67 the figure

AUD/USD opens Asia lower following Chinese data that disappointed.
Likely scenario is a continued decline, particularly if the pair loses the 0.6700 level.

Ross J Burland FXStreet

On the day that both US and Chinese tariffs kick in as a reminded of the recently escalated trade war, AUD/USD has started the week on the back foot. AUD/USD was opening in early Asia -0.14% to a low of 0.6723 from a high of 0.6726 following a spike in USD/CNH and mixed official PMIs from over the weekend. Friday's US session was good two-way business for AUD/USD traders with the price rising from 0.6722 to a high of 0.6740 and back again before another burst to the upside later in the day and into month-end.

Over the weekend, Chinese data disappointed in the official Manufacturing PMI arriving at 49.5 vs expected 49.6 while Services beat arriving at 53.8 vs 53.7. The Aussie is softer on the data considering this is showing that the manufacturing sector is in contraction for the fourth consecutive month due to the trade wars and subsequent slower demand. Other factors at play are the situation in Hong Kong while protests turned violent again over the weekend, outright strengthen the Dollar, piercing the 99 handle for the first time since 2017 and the Reserve Bank of Australia (RBA) in focus for this week which will be followed by Australian Gross Domestic Produce for the second quarter.

RBA to hold but GDP could be a game-changer

The RBA is expected to keep the cash rate on hold at 1%. "We expect the Bank to reiterate it is in ‘wait and see’ mode as it assesses the impact of tax cuts, rate cuts and easing in macro-prudential policy since May. A soft GDP the following day could see the market forecasters bring forward a RBA cut to Oct," analysts at TD Securities explained.

AUD/USD levels

Valeria Bednark, the Chief analyst at FXStree, explained that the AUD/USD pair is in bearish territory according to the daily chart:

"Technical indicators have recovered modestly within familiar levels, holding below their midlines. In the 4 hours chart, the pair offers a neutral-to-bearish stance, as it remains below all of its moving averages, while technical indicators have recovered modestly within negative levels, lacking clear directional strength. The pair could correct higher on a break above 0.6750, the immediate resistance, but the most likely scenario is a continued decline, particularly if the pair loses the 0.6700 level."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.