AUD/USD bounces in tandem with Yuan, Copper, 0.7400 back on sight


  • Bulls fighting back control amid resurgent US dollar supply, Yuan demand.
  • Will the bounce sustain in a data-empty session ahead?

AUD/USD staged a V-shaped recovery from two-week lows of 0.7318 and now consolidates near the 0.7370 region, as the bulls await a fresh impetus for the next push higher.

The Aussie is closely tracking the USD/CNY price-action, having initially dropped in tandem with the Yuan, as the Chinese currency hit fresh yearly lows at 6.8117 versus the US dollar amid mounting US-China trade war fears.

However, the spot quickly reversed to 0.7384 highs after the Yuan recovered losses and added to the selling pressure on the US dollar, as the greenback resumed its declines fuelled by Trump’s negative remarks on the US interest rates hike outlook.

Meanwhile, the rebound in copper prices also aided the renewed upswing in the resource-linked AUD. Looking ahead, the major will remain at the mercy of the market sentiment and US dollar moves, as the US macro calendar remains data-empty.  

AUD/USD Technical Levels

FXStreet’s Analyst Omkar Godbole offers key technical levels for trading the Aussie in the day ahead.

“Resistance: 0.7401 (10-day MA), 0.7441 (July 19 high).

Support: 0.7310 (July 2 low), 0.7160 (Dec 2016 low), 0.7145 (May 2016 low).”

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD holds the lower ground below 1.2550 on downbeat UK GDP

GBP/USD stays pressured below1.2550 after flashing the biggest losses in two weeks the previous day. The UK GDP disappointed expectations by expanding 1.8% MoM in May. Focus shifts to the US CPI data. 

GBP/USD News

EUR/USD holds steady below 1.1350 amid risk-aversion

EUR/USD holds steady below 1.1350, as US dollar trades firmer amid broad risk-aversion. The German ZEW Survey to show signs of an economic turnaround. Heightened expectations for an EU fiscal stimulus plan underpin the shared currency. 

EUR/USD News

Gold: $1796 is the level to beat for the XAU bears

Gold is trying hard to recover ground above the $1800 mark, as the US dollar continues to benefit from broad risk-aversion amid looming coronavirus risks. Let’s see how it is positioned ahead of the critical US CPI release.

Gold News

Forex Today: US dollar seizes control as risk aversion returns, a busy docket ahead

Broad US dollar strength extended into Asia, as risk-averse market conditions persisted amid intensifying coronavirus fears and US-China tensions. The Asian equities followed the late sell-off on Wall Street while the US stock futures struggled with its recovery.

Read more

WTI recovers from intraday low under $40.00 ahead of API inventories

WTI’s pullback from $39.30 fails to defy a two-day losing streak. China’s sustained increase in oil imports confronts chatter of easing output cuts. US inflation data, API stockpiles and American earnings are in the spotlight.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures