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