AUD/USD struggles near 1-month lows, below 0.7100 handle

Haresh Menghani FXStreet

• RBA cuts its growth forecasts and reinforces this week's dovish shift.
• Fresh US-China trade concerns further add to the recent selling bias.

The AUD/USD pair remained under some selling pressure on Friday and dropped to over one-month lows during the Asian session, albeit has managed to bounce of few pips thereafter.

After yesterday's directionless trading action within a narrow trading range, the pair met with some fresh supply on the last trading day of the week after the RBA slashed its economic growth forecasts. The downward revision reinforced the central bank's shift from its long-standing tightening bias earlier this week and kept exerting some downward pressure on the domestic currency.

Meanwhile, concerns over the US-China trade disputes reemerged after the US President Donald Trump confirmed that he will not meet with China President Xi Jinping before the March 1 tariff deadline and further dented the already weaker sentiment surrounding the China-proxy Australian Dollar.

Adding to this, the continuation of the recent US Dollar rally to a near two week high further compounded the bearish pressure and collaborated to the pair's intraday slide to 0.7061, albeit oversold conditions on hourly charts now seemed to hold traders from placing any fresh bearish bets and seemed to be the only factor lending some support.

It would now be interesting to see if the pair is able to attract any meaningful buying interest or bears maintain their dominant position on the last trading day of the week and amid absent relevant market moving economic releases from the US.

Technical levels to watch

AUD/USD

Overview:
    Today Last Price: 0.7083
    Today Daily change %: -0.28%
    Today Daily Open: 0.7103
Trends:
    Daily SMA20: 0.718
    Daily SMA50: 0.7161
    Daily SMA100: 0.7171
    Daily SMA200: 0.7285
Levels:
    Previous Daily High: 0.712
    Previous Daily Low: 0.7088
    Previous Weekly High: 0.7296
    Previous Weekly Low: 0.7138
    Previous Monthly High: 0.7296
    Previous Monthly Low: 0.6684
    Daily Fibonacci 38.2%: 0.71
    Daily Fibonacci 61.8%: 0.7108
    Daily Pivot Point S1: 0.7087
    Daily Pivot Point S2: 0.7072
    Daily Pivot Point S3: 0.7055
    Daily Pivot Point R1: 0.7119
    Daily Pivot Point R2: 0.7136
    Daily Pivot Point R3: 0.7151

Author

Haresh Menghani

FXStreet

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

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