- Aussie gives up recent technical gains as trade concerns suck risk appetite out of broader markets.
- Bullish AUD data early Wednesday did little to discourage sellers.
The AUD/USD is steadily driving towards the 0.7400 level heading through the Asia trading window after headlines that the US is seeking further tariffs against China caused risk appetite for the week to evaporate late on Tuesday.
The US will be looking to impose tariffs on a further $200 billion USD of Chinese goods after Friday’s reciprocal tariffs between the US and China saw neither side willing to back down as the trade war begins to heat up. The Aussie has been sharply knocked off the week’s highs near 0.7483, and improved readings for mid-tier economic indicators out of Australia early Wednesday were only able to provide a brief reprieve from the selling action.
AUD/USD Technical Analysis
The Aussie has breached the rising trendline based off of the recent low at 0.7310, indicating that the corrective rally has officially ended, and the worsening US-China trade tensions will keep the AUD under pressure for the remainder of the week.
| Spot rate: | 0.7405 |
| Relative change: | -0.67% |
| High: | 0.7451 |
| Low: | 0.7404 |
| Trend: | Bearish |
| Support 1: | 0.7400 (key technical barrier) |
| Support 2: | 0.7361 (July 5th swing low) |
| Support 3: | 0.7310 (2018 low, major technical bottom) |
| Resistance 1: | 0.7484 (July 10th swing high) |
| Resistance 2: | 0.7494 (50.0% Fibo retracement level) |
| Resistance 3: | 0.7537 (61.8% Fibo retracement level) |
AUD/USD Chart, 15-Minute
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