AUD/USD: Bears at the helm as risk-off receives the boost amid trade war

In addition to opening with the bearish gap to 0.6737, AUD/USD currently drops to the intra-day low of 0.6703 by the press time of early Monday morning in Asia.

Aussie traders respond to macro risk-off as the US-China trade war intensified in recent days after China announced fresh tariffs on the US goods worth of $75 billion, and the US retaliated by increasing the levies on $500 billion worth of Chinese goods, on late-Friday.

Other than tariff hike, the US President Donald Trump also urged the US companies to pull their production units out of China and also regretted announced less tariff hike afterward.

Elsewhere, the Jackson Hole Symposium tamed the bears as the US Fed Chair Jerome Powell highlighted economic uncertainty while the Reserve Bank of Australia (RBA) Governor Philip Lowe called for the government’s help to stimulate growth.

With this, markets turn highly risk-averse and dumped riskier assets like the Australia Dollar (AUD), equities, etc. As a result, the US 10-year Treasury yields slumped nearly seven basis points to 1.54% by the Friday-end while Dow futures drop close to 300 points at the week-start.

Economic calendar doesn’t offer any big data/events from Australia but the US Durable Goods Orders and Chicago Fed National Activity Index will busy the investors. Though, no one among the traders’ fraternity will ignore trade/political news.

Technical Analysis

January month’s bottom near 0.6684 and the month’s low surrounding 0.6677 are on the short-term traders’ radar ahead of 0.6600 round-figure. Alternatively, 0.6740, 0.6820 and June month low of 0.6882 will challenge counter-trend traders.