AUD/USD plummets to lows, retreats farther below 0.80 handle


For the third straight session, the AUD/USD pair failed to breakthrough 0.8030-40 supply zone and witnessed a sharp retracement of around 60-pips from session tops. 

Escalating risk of a 'trade war' between the US and China, following a tariff announcement from the US, was eventually seen weighing heavily on the China-proxy Australian Dollar since the Asian session on Tuesday. 

Adding to this, a modest US Dollar rebound, supported by the US Senate vote to advance a three-week funding bill to reopen the federal government, further collaborated to an intense selling pressure around the major. 

Meanwhile, a subdued action around copper prices and a modest pullback in the US Treasury bond yields did little to lend any support to the commodity-linked/higher-yielding currency and stall the pair's sharp slide to the 0.7970 region.

In absence of any major market moving economic releases, the pair remains at the mercy of USD price dynamics, with a follow-through retracement, led by some additional long-unwinding trade, now looking a distinct possibility.

Technical levels to watch

A follow-through retracement below 0.7960 level, leading to a subsequent weakness towards 0.7640-35 strong horizontal support, might now drag the pair back towards the 0.7900 handle.

On the flip side, any attempted up-move now seems to confront fresh supply near the 0.8000 handle and subsequent appreciating move might continue to be capped at the 0.8030-40 supply zone. 

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 holds below 1.0750 ahead of key US data

EUR/USD holds below 1.0750 ahead of key US data

EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground. 

EUR/USD News

USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments

USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments

USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.

USD/JPY News

Gold price oscillates in a range as the focus remains glued to the US PCE Price Index

Gold price oscillates in a range as the focus remains glued to the US PCE Price Index

Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.

Gold News

Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium

Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000

Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors. 

Read more

US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets

US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets

The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures