AUD/USD downed to nine-day lows near 0.6835, eyes on trade, Trump

Aussie takes a U-turn, as risk-off returns on trade, Hong Kong woes.
US dollar firms up across the board, three-week tops back on sight.
Next of note remains Trump’s speech and trade developments.

Dhwani Mehta FXStreet

The AUD/USD pair enjoyed good two-way businesses so far in Asia this Tuesday, having risen to 0.6854 highs before taking a sharp U-turn to hit fresh nine-day lows near 0.6835 region, where it now wavers.

AUD/USD fails to resist above the 100-DMA barrier

The Aussie dollar failed to sustain its uptick above the 100-DMA barrier, now at 0.6842, which was regained following a positive surprise seen in the Australian NAB Business Survey released earlier today at 0030 GMT. Australia NAB Business Survey unexpectedly improves in October

The latest leg down was mainly driven by a broad-based US dollar rebound, as concerns over the US-China trade deal and Hong Kong’s civil unrest resurged and fueled a flight to safety, with markets seeking protection in the US currency. The US dollar index recovery from the recent lows of 98.13 gained traction last hours, now sending the rates towards three-week highs of 98.40.

The AUD/USD pair also tracked the fresh selling seen in its OZ counterpart, the Kiwi, after the RBNZ survey showed New Zealand’s inflation expectations falling further in the fourth quarter of 2019. Meanwhile, rising industry expectations that the RBA could announce quantitative easing next year also likely added to the weight on Aussie. RBA QE on its way by end-2020 – JP Morgan

The spot will remain at mercy of the USD dynamics and risk trends in the face of looming trade risks and heading into the key event risk for Tuesday, the US President Trump’s speech. Any mention on the likely US-China trade deal during his speech (at 1700 GMT) is likely to have a major impact on the risk sentiment and dollar trades.

AUD/USD Technical levels to consider

AUD/USD

Overview
Today last price	0.6836
Today Daily Change	-0.0015
Today Daily Change %	-0.22
Today daily open	0.6851

Trends
Daily SMA20	0.6854
Daily SMA50	0.6815
Daily SMA100	0.6848
Daily SMA200	0.6945

Levels
Previous Daily High	0.6866
Previous Daily Low	0.6846
Previous Weekly High	0.6929
Previous Weekly Low	0.6847
Previous Monthly High	0.693
Previous Monthly Low	0.667
Daily Fibonacci 38.2%	0.6854
Daily Fibonacci 61.8%	0.6858
Daily Pivot Point S1	0.6843
Daily Pivot Point S2	0.6834
Daily Pivot Point S3	0.6823
Daily Pivot Point R1	0.6863
Daily Pivot Point R2	0.6874
Daily Pivot Point R3	0.6883

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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