AUD/USD off lows, still deep in the red amid domestic political developments

Haresh Menghani FXStreet

• The Australian political drama prompts some aggressive selling around the Aussie.
• Fresh US-China trade tariffs/resurgent USD demand adds to the downward pressure.

The AUD/USD pair maintained its heavily offered tone on Thursday, albeit has managed to recover few pips from fresh weekly lows touched earlier today.

The pair extended overnight retracement slide and came under some intense selling pressure on Thursday amid the latest Australian political turmoil, wherein the country's PM Malcolm Turnbull will face a second leadership challenge on Friday.

This against the backdrop of resignations by three of the senior ministers, who supported Turnbull in a leadership ballot on Tuesday against Dutton, added to the political woes and weighed heavily on the Australian Dollar.

Meanwhile, a goodish pickup in the US Dollar demand, supported by Wednesday's FOMC meeting minutes, supporting prospects for another interest-rate hike in September, further collaborated towards aggravating the selling pressure around the major.

Adding to this, fresh US-China trade tensions made it worse for the China-proxy Australian Dollar and dragged the pair back below the 0.7300 handle. The world's two largest economies escalated their trade war on Thursday with the implementation of 25% tariffs on $16 billion worth of imports from either side.

The selling pressure now seems to have abated, at least for the time being, as market participants now look forward to the Day 1 of the annual Jackson Hole Economic Policy Symposium for fresh directional impetus.

Technical levels to watch

Immediate resistance is pegged near the 0.7315 zone and any subsequent recovery attempt might now be capped at the 0.7345-50 region. On the flip side, the 0.7270 level is likely to act as an immediate support, which if broken might turn the pair vulnerable to accelerate the slide towards 0.7240-35 support area en-route the 0.7200 round figure mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.