AUD/USD is stuck in a range, tariff deadline looms

AUD/USD has been restricted to 0.73 to 0.7420 range since June 27.
Trade jitters mount ahead of a US move to impose $34 billion of tariffs on Chinese exports.

Omkar Godbole FXStreet Contributor

The AUD/USD pair is reporting marginal gains in Asia amid rising fears of US-China trade war.

The currency pair has been restricted to 0.73 to 0.7420 range since June 27 and could have a tough time scaling the upper end of the trading range as the markets are getting jittery ahead of a July 6 deadline when the United States is due to impose the tariffs on Chinese exports.

China has assured that it will "absolutely not" fire the first shot in a trade war with the United States but has vowed to retaliate in kind if the US implements tariffs on $34 billion of Chinese imports on July 6.

The fear of a full-blown trade war between the US and China could keep the AUD (a proxy for China) and CNY under pressure.

That said, the AUD/USD technical set up is teasing a bullish break of the 0.73 - 0.7420 trading range. At press time, the currency pair is trading at 0.7382.

AUD/USD Technical Levels

Resistance: 0.7424 (July 4 high), 0.7450 (38.2% Fib R of June 6 high - July 2 low), 0.75 (50-day moving average).

Support: 0.7367 (session low), 0.7327 (61.8% Fib R of Jan 2016 low - Jan 2018 high), 0.73 (psychological support).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bearish	Neutral	Low
4H	Bearish	Neutral	Low
1D	Bullish	Neutral	Shrinking
1W	Bearish	Neutral	Shrinking
Updated Jul 5, 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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.