AUD/USD stabilizes under 0.7100, ends week down more than 150 pips

  • Australian dollar among worst performers over the week, hit by RBA expectations.
  • AUD/USD unable to recover ground heads for the lowest close since September 28.

The AUD/USD pair traded sideways on Friday, consolidating a weekly loss of more than 150 pips. The US dollar weakened amid an improvement in risk sentiment, but still the aussie was unable to stage a recovery.

The Australian dollar was the worst performer among G10 currencies during the week. “The AUD has been undermined over the past week by building expectations for further RBA easing next month, and the broad-based deterioration in risk sentiment”, explained analysts at MUFG Bank. They point out the aussie remains one of the most sensitive G10 currencies to equity market performance.

At MUFG Bank, analysts see limited downside considering an improving economic performance from China. They also noted the aussie could “from expectations over a Blue Wave at the US election. It would open the door to more significant US fiscal stimulus providing support for global growth, and a likely easing of US-China trade tensions.”

Technical outlook

The weekly chart shows the AUD/USD standing above the 20-week moving average, with a current patter of slow moves to the upside and sharp declines. The bias points to the downside with a key support at the 20-week moving average around 0.7070 and then, the 0.7000 area; a break lower should increase the bearish pressure.

It AUD/USD manages to hold above 0.7100 over the next week, the aussie could alleviate the pressure, but it needs to break above 0.7220/40 to negate the current negative bias.

AUD/USD weekly chart




Today last price 0.7085
Today Daily Change -0.0008
Today Daily Change % -0.11
Today daily open 0.7093
Daily SMA20 0.715
Daily SMA50 0.7206
Daily SMA100 0.7093
Daily SMA200 0.6789
Previous Daily High 0.7172
Previous Daily Low 0.7055
Previous Weekly High 0.7244
Previous Weekly Low 0.7096
Previous Monthly High 0.7414
Previous Monthly Low 0.7004
Daily Fibonacci 38.2% 0.71
Daily Fibonacci 61.8% 0.7127
Daily Pivot Point S1 0.7041
Daily Pivot Point S2 0.699
Daily Pivot Point S3 0.6924
Daily Pivot Point R1 0.7158
Daily Pivot Point R2 0.7224
Daily Pivot Point R3 0.7275



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