AUD/USD sold-off into renewed risk-aversion wave, tests 0.6750

Aussie downed by broad USD rebound, CNY depreciation comments amid risk-off.
Falling Chinese iron-ore futures add to the downside in the AUD.
All eyes on trade war, US CPI and Australian employment data.

Dhwani Mehta FXStreet

The selling interest around the AUD/USD pair gathered pace in the European trading after the US dollar regained ground across the board amid a major turnaround in the risk sentiment.

Souring risk appetite spurred by trade jitters, Hong Kong protests

Escalating US-China trade row combined with the latest developments surrounding the Hong Kong protests triggered risk-aversion across the board, with the US equity futures turning south in tandem with the Treasury yields.

Hong Kong cancels all flights and Chinese police assembling in Shenzhen

Moreover, the sentiment around the Australian dollar was dented by the slump in the Chinese iron-ore prices. The ferrous metal hit fresh two-month lows of CNY 609.50 ($86.31) per tonne amid worries of weak demand and supply risks. Note that iron-ore is Australia’s top export product.

Further, a weaker Yuan fix by the PBOC, in a bid to counter the impact of the US tariffs on the economy, also added to the bearish momentum seen in the spot while markets digest the weekend’s comments on US-China trade by the US President Trump.

The higher-yielding currency will continue to get influenced by the risk trends in the session ahead, as the US docket remains data-empty this Monday. Also, in focus remains the speech by the Reserve Bank of Australia (RBA) policymaker Kent for near-term trading impetus ahead of the US CPI and Australian jobs data.

AUD/USD Technical Levels

AUD/USD

Overview
Today last price	0.6756
Today Daily Change	-0.0024
Today Daily Change %	-0.35
Today daily open	0.6787

Trends
Daily SMA20	0.6907
Daily SMA50	0.6939
Daily SMA100	0.6986
Daily SMA200	0.7072

Levels
Previous Daily High	0.682
Previous Daily Low	0.6778
Previous Weekly High	0.6822
Previous Weekly Low	0.6676
Previous Monthly High	0.7082
Previous Monthly Low	0.6832
Daily Fibonacci 38.2%	0.6794
Daily Fibonacci 61.8%	0.6804
Daily Pivot Point S1	0.677
Daily Pivot Point S2	0.6753
Daily Pivot Point S3	0.6729
Daily Pivot Point R1	0.6812
Daily Pivot Point R2	0.6837
Daily Pivot Point R3	0.6854

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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