AUD/USD on the back foot as trade/political pessimism welcomes the new week


  • AUD/USD reacts to comments from the US President Donald Trump indicate souring US-China relations.
  • A short-term symmetrical triangle remains in play.
  • Traders will keep an eye over trade/political headlines amid the lack of data/events.

While Friday’s risk recovery triggered the AUD/USD pair’s pullback, latest statements from the US President Donald Trump exert downside pressure on the Aussie as it trades near 0.6780 during early Monday morning in Asia.

The US President Donald Trump further dimmed the prospects of any meaningful progress during the September month US-China trade talks with this latest media remarks. In a nutshell, Mr. Trump treated China’s Huawei as a national threat and warning the dragon nation of negative impacts on trade negotiations if it uses the force in Hong Kong. Both of which will give a heavy workload for Chinese media to start the week with.

However, President Trump’s comments that he doesn’t see any recession, against the market fears, and that of criticizing the Fed, as usual, helped the traders remain less afraid.

The Aussie pair showed little momentum in last week amid market fears of a global economic slowdown and China data.

Given the lack of data/events scheduled for publishing, investors will keep following trade/political news for fresh impulse ahead of the Reserve Bank of Australia’s (RBA) meeting minutes and Jackson Hole Symposium.

Technical Analysis

The immediate symmetrical triangle is on the verge of breaking out the current 0.6790 – 0.6760 range, which in turn can flash 0.6825/30 and 0.6730 on the chart based upon the side of breaks. However, 0.6900 and 0.6677 are likely the key levels to watch during additional momentum.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures