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  • Aussie slips on trade headlines, regains footing after improved West Survey reading.
  • Further tariffs to be announced between the US and China as trade war concerns resurface through the broader market.

The AUD/USD is catching some minor lift following a better-than-expected Westpac Confidence Survey, and the pair is trying to build a floor from 0.7420  after slipping towards 0.7400 on trade headlines.

Australia’s West Consumer Confidence Survey printed at a healthy 3.9% after coming in at 0.3% in the previous period as consumers begin to allow themselves a glimmer of hope for Australia’s economic health looking forward. This was the best reading of the sentiment indicator since November of 2013, when the survey clipped in at 8.0%. As Westpac noted, “much of the improvement over the last year reflects a more balanced growth profile across states with stabilising conditions in the mining sector driving a recovery in Queensland and WA.”

Risk appetite is still in full-reverse mode after the US formally revealed that they plan to announce further tariffs on $200 billion USD worth of Chinese imports, and trade angst has returned to broader currency markets after a few days of relative calm after the US and China enacted round-turn tariffs on each other last Friday.  

Early Wednesday still has Home Loans figures coming up shortly at 01:30 GMT, and a surprise positive reading could help spur Aussie traders to step back into the buy side.

AUD/USD Technical Analysis

Aussie bulls made a second attempt to push for the 0.7500 key barrier recently, but momentum slowed prematurely and the announcement of more US-China tariffs to come has sent risk appetite reeling, cementing a softening position for the AUD. The 50- and 200-period MAs have also accelerated a bearish crossover on the lower timeframes, suggesting that bulls are likely to continue pulling back from their failure to capture 0.7500.

Spot rate:   0.7420
Relative change:   -0.38%
High:   0.7451
Low:   0.7411
   
Trend:   Bearish
   
Support 1:   0.7400 (Major technical level)
Support 2:   0.7380 (June 26th low)
Support 3:   0.7310 (current 2018 low)
   
Resistance 1:   0.7485 (current week high; 200-period H4 SMA)
Resistance 2:   0.7600 (major technical level)
Resistance 3:   0.7674 (previous swing high)

 

 

 

 

 

 

 

 

 

 

 

AUD/USD Chart, 15-minute