AUD/USD consolidates this week’s steep decline to over 1-month lows

   •  RBA cuts its economic growth forecasts and prompts some fresh selling.
   •  Resurfacing US-China trade tensions add to the downward momentum.
   •  Risk-off mood does little to lend any support or ease the bearish pressure.

The AUD/USD pair struggled to register any meaningful recovery and remained within striking distance of over one-month lows, set earlier during the Asian session.

Extended its rejection slide from the very important 200-day SMA, the pair remained under some selling pressure for the fifth session in the previous six and added to this week’s hefty losses after the Reserve Bank of Australia (RBA) lowered the domestic growth forecasts.

Meanwhile, resurfacing US-China trade tensions, coupled with the prevalent risk-off mood further collaborated towards driving flows away from the China-proxy/perceived riskier Australian Dollar and aided the US Dollar to continue strengthening for the sixth straight session. 

However, near-term oversold conditions now seemed to be the only factor that helped ease the bearish pressure, at least for the time being. Nevertheless, the pair remains on track to post its lowest weekly close of 2019 and erase all of the gains posted since early January.

There isn’t any major US market moving economic data due for release and hence, the USD price dynamics/broader market risk-sentiment now seem to act as key determinants of the pair’s momentum on the last trading day of the week. 

Technical levels to watch