“¢ Struggles to find any buyers amid strong USD/positive US bond yields.
“¢ Trade tensions and weaker copper prices do little to lend any support.
The AUD/USD pair struggled to build on early recovery attempt and remains within striking distance of near 18-month lows, set in the previous session.
It has been a unidirectional move down for the pair since the beginning of this week as the US Dollar rally showed little signs of bullish exhaustion. The pair found little support from a continuous devaluation of the Chinese Yuan, which indirectly seemed affecting sentiment surrounding the China-proxy Australian Dollar.
The selling pressure seemed to abate a bit, at least for the time being, amid a consolidative USD price-action, despite a modest uptick in the US Treasury bond yields.
However, the ongoing slide in copper prices, which tends to undermine demand for commodity-linked currencies – like the Aussie, did little to provide any support and assist the pair to register any meaningful recovery from the lowest level since Jan. 2017.
Currently trading around the 0.7335-40 region, traders now look forward to the final US Q1 GDP growth figures in order to grab some short-term trading opportunities, albeit the upside might remain capped amid lingering US-China trade war fears.
Technical levels to watch
Weakness below 0.7325 area (overnight swing low) is likely to find some support near the 0.7300 handle, below which the downfall could further get extended towards the 0.7270-60 region.
On the flip side, the 0.7365-70 zone now seems to act as an immediate hurdle and is followed by the 0.7400 mark, which if cleared might trigger a short-covering bounce back towards the 0.7440-45 region.
Share
