AUD/USD drops lower to print fresh lows


  • AUD/USD gathers momentum to the downside, but technically now overstretched on an hourly basis.
  • AUD/USD is currently trading at 0.6891, having printed a fresh low of 0.6886, albeit still with potential towards 0.6850's, levels pointed out by analysts at Commerzbank in the prior update as follows:
  • AUD/USD: Bears in control despite risk-on U.S. session

AUD/USD is continuing to bleed out, despite a risk-on session in the U.S. today. We are heading towards the Wall Street close and the indexes have started to tail off, likely pressured by short-term speculators pulling out of the trades as the U.S. yields flake out as well. 

The U.S. session and indexes shrugged off the threat of trade war escalations at the start of the day, with investor appetite beefed up by positive earnings and U.S. economic data. However, the chickens may have come home to roost at the end of the day, and we are reminded by Commerce Sec. Wilbur Ross who was speaking earlier that trade wars are indeed escalating, saying that the Huawei order will be effective starting tomorrow - The announcement fueled a dip in stocks which eventually morphed into a low for the latter part of the afternoon's session. 

AUD/USD levels

Elsewhere, in the FX space, USD/CNH has come under pressure as well which was the final blow to the Aussie that can likely keep bleeding based on fundamentals, but technically, AUD/USD is now oversold on a short term basis and likely needs correction before sinking lower towards the said target down in the 0.6850's

 

 

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

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures