AUD/USD: Weaker around 0.7000 as USD recovers


  • Aussie ignores trade optimism as USD recovery outweighs.
  • China Caixin Manufacturing PMI misses estimates, with 51.5 in Dec.
  • AUD/USD sees a negative start to 2020 despite PBOC rate cut.

Broad-based US dollar recovery remains the key theme starting out 2020, weighing negatively on most majors, including the AUD/USD pair, as it battles the 0.70 handle in early European trading.

2020 kicks off with the dollar recovering amid Chinese RRR cut, trade optimism

The major fails to benefit from the US-China phase one trade deal-led risk-on sentiment while the PBOC RRR cut to revive the Chinese economic growth and firmer copper prices also did little to help the AUD bulls. US President Trump said on the final day of 2019 that the US-China phase one trade deal will be signed on January 15th in Washington.  

The pair risks further correction as the US dollar recovery is set to extend ahead of the US macro releases and light trading. Further, the technical set up also points to a deeper correction below 0.7000, as explained by Omkar Godbole, FXStreet’s Analyst.

Omkar noted: “The 4-hour chart is reporting a bearish divergence of the relative strength index and the MACD histogram. A bearish divergence occurs when an indicator prints lower highs, contradicting higher highs on price and represents bullish exhaustion. The Doji candle seen on the 4-hour chart is also signaling buyer exhaustion and validating the overbought or above-70 reading on the 14-day RSI.”

Meanwhile, downbeat Chinese Caixin Manufacturing PMI data also adds to the bearish bias seen around the Aussie. China's Caixin Manufacturing PMI eased to 51.5 in Dec vs. 51.7 expected.

AUD/USD Technical levels to watch

AUD/USD

Overview
Today last price 0.6999
Today Daily Change -0.0015
Today Daily Change % -0.21
Today daily open 0.7014
 
Trends
Daily SMA20 0.6904
Daily SMA50 0.6862
Daily SMA100 0.6824
Daily SMA200 0.69
 
Levels
Previous Daily High 0.7043
Previous Daily Low 0.7004
Previous Weekly High 0.6987
Previous Weekly Low 0.6892
Previous Monthly High 0.7033
Previous Monthly Low 0.6762
Daily Fibonacci 38.2% 0.7019
Daily Fibonacci 61.8% 0.7028
Daily Pivot Point S1 0.6997
Daily Pivot Point S2 0.6981
Daily Pivot Point S3 0.6958
Daily Pivot Point R1 0.7036
Daily Pivot Point R2 0.7059
Daily Pivot Point R3 0.7075

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD under pressure below 1.1100 as US dollar rebounds

EUR/USD remains under pressure below 1.1100 amid the broad US dollar rebound. US President Trump's decision to extend lockdown to tackle the coronavirus outbreak intensified risks of a deeper economic slowdown and underpinned the haven demand for the greenback. 

EUR/USD News

GBP/USD: Rebound remains capped by 1.2400 amid firmer US dollar

GBP/USD is off the lows but the upside attempts remain capped by 1.2400 amid a broadly stronger US dollar. The dire warnings on the UK’s economic growth amid expectations of a longer lockdown weigh on the spot. 

GBP/USD News

Cryptocurrencies: Bulls try to take the reins again, XRP in front

The XRP/USD pair is best positioned to escape the bearish trap that has gripped the market in recent weeks. Ether needs to do better than BTC, as it has happened over the weekend. Market sentiment is at a negative extreme, an invitation to a short-term upward shift.

Read more

Gold remains confined in a narrow range around $1620 level

Gold extended its sideways consolidative price action and remained confined in a four-day-old trading range through the early European session on Monday. A goodish pickup in the USD demand seemed to be a key factor capping gains.

Gold News

WTI closes in on multi-year lows, trades around $20.50 on demand concerns

The barrel of West Texas Intermediate (WTI) posted losses for the sixth straight time last meek and is now looking to close the month of March more than 50% lower. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures