AUD/USD struggling after losing 0.7200

Bearish action keeps the AUD/USD pinned to the downside amidst a thin data showing.
Broader markets have turned Dollar-positive, forcing down risk assets.

Joshua Gibson FXStreet

The AUD/USD is swamped in at new near-term lows at 0.7175 as the US Dollar sees broad-market resurgence on renewed risk aversion, and the Aussie's recent bid-up is facing challenges once again.

Aussie traders were able to pick the AUD up off the floor near the 0.700 major handle at the beginning of this month, aided by receding buying interest in the Greenback, but USD-bidding is back in fashion this week, and the Aussie is slipping from a near-term swing high into the 0.7300 level.

The National Australia Bank's Business Confidence and Conditions indicators came in at 4 and 12 respectively, compared to the previous reading for both indicators of 6 and 15, and economic data for the Australian continent continues to miss expectations more often than not, and growth projections continue to remain cautious for the domestic Aussie economy, with lopsided growth and unease over future trading conditions amidst ongoing US-China trade tensions.

The AUD/USD will be seeing a flash of meaningful data on Thursday, with the latest Aussie employment rate and participation figures, and markets will be expecting a good-but-not-great turnout.

AUD/USD levels to watch

Downside potential for the Aussie-Dollar is growing, according to FXStreet's own Valeria Bednarik: "in the 4 hours chart, the 20 SMA gains downward strength well above the current level, while technical indicators maintain their strong bearish slopes, the Momentum at daily lows and the RSI at around 37, all of which leans the risk toward the downside. A strong static support comes at 0.7170, with a break below the level exposing the 0.7100 level. Above the mentioned 0.7220 level, on the other hand, the pair could retest the 0.7250 static resistance level, albeit there are no technical signs to support such recovery at the moment.

Support levels: 0.7170 0.7130 0.7100

Resistance levels: 0.7220 0.7250 0.7290

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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