AUD/USD feels the heat as Yuan and AUD/JPY slide

Sliding Yuan seems to have dragged Aussie - the proxy for China, lower with it.
AUD/JPY selling may have added to the bearish pressure around the AUD/USD pair.

Omkar Godbole FXStreet Contributor

The AUD/USD pair is likely being dragged lower by Chinese Yuan and AUD/JPY pair.

At press time, the AUD/USD is trading at 0.7370, having clocked a low of 0.7361 and a high of 0.7398 earlier today.

AUD, which is widely considered as a proxy for China, is losing altitude, possibly due to Yuan depreciation. The USD/CNY pair rose to 6.5830 today - the highest level since December 2017. It appears as though China is weakening its currency in order to help the economy absorb shocks from Trump's trade war.

Further, the AUD/JPY is on the retreat likely due to increased demand for anti-risk JPY amid trade war fears. The selling in AUD/JPY could be hurting the AUD/USD.

Also, on the data front, there is little or no good news that would cheer up the AUD. Chinese industrial profits for May came in at 21.1 percent year-on-year following a 21.5 percent rise in April.

Looking ahead - the AUD/USD will likely continue tracking the action in the Chinese Yuan and AUD/JPY pair. Risk reset may stall the slide in the AUD.

AUD/USD Technical Levels

Support: 0.7345 (June 21 low), 0.7327 (61.8% Fib R on Jan 2016 low - Jan 2018 high), 0.73 (psychological level).

Resistance: 0.7401 (100-hour moving average), 0.7444 (June 22 high), 0.7476 (May 30 low).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Oversold	High
1H	Bearish	Oversold	High
4H	Bearish	Neutral	Low
1D	Bearish	Oversold	Expanding
1W	Strongly Bearish	Neutral	Shrinking
Updated Jun 27, 02:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD risks a deeper drop below 1.1750

EUR/USD keeps its vacillating mood in place as the the NA session drwas to a close on Tuesday, hovering below the 1.1800 hurdle amid acceptable gains in the US Dollar. In the meantime, market participants and the FX galaxy are expected to closely follow President Trump’s SOTU speech around 2AM GMT.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Australia CPI to highlight persistent price pressures, backing a hawkish outlook

Australia will release its key set of inflation figures for the month of January on Wednesday, with the Consumer Price Index expected to rise by 3.7%, slightly lower than the 3.8% in the last month of 2025.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.