- AUD/USD suffers from a lack of trade progress and uncertainty.
- Risk-off led by Hong Kong violence also undermines the Aussie.
- Focus shifts to Tuesday’s Australian data as US markets are closed on Monday.
The AUD/USD pair is seen flirting with the key support located near weekly lows of 0.6847, as bears remain in control amid a risk-off market profile.
Lower lows set up on daily sticks point to further losses
Markets remain cautious and refrain from placing any bets on the higher-yielding currencies such as the Aussie, in the face of a lack of certainty on the US-China trade deal, especially after the White House Adviser Navarro quoted the US President Trump, as saying that he didn’t agree to anything related to tariffs.
Adding to the downbeat tone around the Aussie, the risk-off trades are accelerated by the intensifying violence in Hong Kong after two protesters were shot by police amid ongoing demonstrations. Asian equities turned red on the Hong Kong political chaos, dragging the Wall Street futures lower alongside. Meanwhile, the US dollar continues to benefit from the safe-haven flows when compared to its main rivals. The USD index sits at three-week highs of 98.40, having formed a double bottom pattern on the daily sticks.
Also, looking at AUD/USD’s daily chart, a lower low set up can be observed, suggesting that further downside risks remain in play ahead of a data-heavy week. The focus now shifts towards the Australian NAB survey due on Tuesday amid an empty US docket, as the Americans celebrate their National holiday today.
AUD/USD Technical levels to consider
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
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.