AUD/USD: Trade-exposed Aussie still depending on tariff headlines for direction
- A flat Aussie hits the new week awaiting new developments as trade-focused traders keep an eye on US-China tensions.
- With a thinned-out calendar for the week, tariff developments and trade comments will have a magnified effect on the weary AUD.
The AUD/USD is peeking into recent highs near 0.7430 after a rough previous week that saw the Aussie testing into July's lows in choppy swings, but hopeful bulls are keeping the pair tentatively flat near last week's highs as they await further developments in global trade.
A shortfall in US Dollar bidders saw the AUD manage to stage a late-week recovery from recent lows, and the Aussie is being helped into a balanced stance by bouncing metals prices, which continue to surge and fall at the behest of trade headlines focusing on the US-China trade spat which still has the potential to deliver further trade-damaging tariffs on the horizon.
It's going to be a quiet week for the AUD, and trade headlines will be the deciding factor for the AUD/USD's directional bias moving forward, though Consumer Price Index figures for 2018's second quarter will be dropping early Wednesday at 01:30 GMT, with the q/q CPI for Q2 forecast to grind upwards from 0.4% to 0.5%.
AUD/USD levels to watch
The Aussie is geared to move sideways against the Greenback on a flattening technical outlook, and according to FXStreet's own Valeria Bednarik: "the daily chart offers a neutral technical stance, as the pair has been moving for almost three weeks around a flat 20 DMA, while technical indicators lack clear directional strength, stuck around their midlines. Shorter term, and according to the 4 hours chart, the pair is developing below a mild bearish 200 SMA and above directionless 20 and 100 SMA, while technical indicators eased, but hold in positive territory. The pair has an immediate resistance in the 0.7440/50 region but would need to clearly break July's high at 0.7483 to gain further upward traction."
Support levels: 0.7370 0.7330 0.7300
Resistance levels: 0.7445 0.7490 0.7520
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.
