AUD/USD flirts with lows near 0.7350 amid US-China talks, covid woes


  • AUD/USD breaks lower amid a mixed market mood.
  • US-China talks and Australian covid woes weigh on the spot.
  • A broadly subdued US dollar limits the downside in the aussie.

AUD/USD is breaking its consolidative mode to the downside in the Asian session, losing the midpoint of the 0.7300 level, as the risk-off mood intensifies amid tensions surrounding the US-China talks and looming covid worries in Australia.

The market mood is worsening, with S&P 500 futures extending losses below 4,400, as US-Sino trade talks get underway. China's Vice Foreign Minister Xie Feng said that the standstill in US-Sino relations was due to some people in America treating Beijing as an "imaginary enemy”.

Further, Australia sees no relief from the Delta covid variant flareups while Goldman Sachs predicts that the Sydney covid lockdown is likely to persist until September., as the US bank revises down its Australian Q3 GDP forecast.

Meanwhile, a broadly subdued US dollar and retreating Treasury yields offer no support to the aussie bulls, as a test of the 0.7300 level appears inevitable going forward. Later in the day, the US New Homes Sales data will provide some fresh trading impetus.

Investors could keep an eye on the US-China trade talks and the covid developments ahead of Wednesday’s FOMC decision, where the Fed is likely to throw some hawkish hints on tapering, possibly in the final quarter of this year.

AUD/USD: Technical levels

“In the 4-hour chart, the pair is pressuring a mildly bullish 20 SMA, while the longer moving averages head firmly lower above the current level. Technical indicators retreat, with the Momentum nearing its 100 level and the RSI already within negative levels. Support levels: 0.7330 0.7290 0.7260. Resistance levels: 0.7400 0.7440 0.7475,” FXStreet’s Chief Analyst, Valeria Bednarik notes.

AUD/USD: Additional levels

AUD/USD

Overview
Today last price 0.7348
Today Daily Change -0.0017
Today Daily Change % -0.23
Today daily open 0.7366
 
Trends
Daily SMA20 0.7451
Daily SMA50 0.7594
Daily SMA100 0.7653
Daily SMA200 0.7592
 
Levels
Previous Daily High 0.7402
Previous Daily Low 0.7356
Previous Weekly High 0.7417
Previous Weekly Low 0.7288
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.7374
Daily Fibonacci 61.8% 0.7384
Daily Pivot Point S1 0.7348
Daily Pivot Point S2 0.7329
Daily Pivot Point S3 0.7302
Daily Pivot Point R1 0.7394
Daily Pivot Point R2 0.7421
Daily Pivot Point R3 0.744

 

 

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