AUD/USD: On offers for the third straight day; bears eyeing 0.7000 mark


  • Extends the recent corrective slide from near three-month tops, set last Friday.
  • The slide seemed unaffected by renewed optimism over a US-China trade deal.
  • Tempered Fed rate cut expectations underpin the USD and added to the weakness.

The AUD/USD pair kept losing ground on Tuesday and dropped to three-day lows in the last hour, with bearish eyeing a move towards challenging the key 0.70 psychological mark.

The pair extended its retracement slide from near three-month tops set last Friday and remained under some selling pressure for the third consecutive session on Tuesday, rather unaffected by the fact that the US and China might be moving closer towards a trade deal.

The South China Morning Post (SCMP) reported that US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are likely to travel to China next week for negotiations with Vice Premier Liu He, though did little to impress the bulls.

With the US-China trade optimism failing to provide any meaningful impetus to the China-proxy Australian Dollar, a follow-through pickup in the US Dollar demand further collaborated to the pair's ongoing slide back towards challenging 100-day SMA support.

Despite the US President Donald Trump's continuous pressure for immediate rate cuts, tempered expectations of an aggressive monetary easing by the Fed continued underpinning the greenback and lifted it further beyond the 97.00 handle to fresh weekly tops.

It would now be interesting to see if the pair can attract any meaningful buying interest or continued with downward momentum, marking the end of the recent positive momentum amid absent relevant market moving economic releases from the US.

Technical levels to watch

AUD/USD

Overview
Today last price 0.7021
Today Daily Change -0.0015
Today Daily Change % -0.21
Today daily open 0.7036
 
Trends
Daily SMA20 0.7002
Daily SMA50 0.6955
Daily SMA100 0.7017
Daily SMA200 0.709
Levels
Previous Daily High 0.7058
Previous Daily Low 0.703
Previous Weekly High 0.7082
Previous Weekly Low 0.6996
Previous Monthly High 0.7026
Previous Monthly Low 0.6831
Daily Fibonacci 38.2% 0.7041
Daily Fibonacci 61.8% 0.7047
Daily Pivot Point S1 0.7025
Daily Pivot Point S2 0.7014
Daily Pivot Point S3 0.6997
Daily Pivot Point R1 0.7052
Daily Pivot Point R2 0.7069
Daily Pivot Point R3 0.708

 

 

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