AUD/USD slips below mid-0.6900s, fresh one-week low

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  • Persistent US-China trade tensions continue to weigh on the Aussie.
  • A modest pickup in the USD demand adds to the prevalent selling bias.
  • Technical set-up points to an extension of the ongoing bearish slide.

The AUD/USD pair remained depressed through the early North-American session and is currently placed at the lower end of its daily trading range, just below mid-0.6900s. 

After the previous session’s subdued trading action, the pair came under some renewed selling pressure on Wednesday and added to this week’s heavy losses following the release of mixed Chinese inflation figures. This against the backdrop of persistent worries over a further escalation in the US-China trade tensions kept exerting some pressure on the China-proxy Australian Dollar.

Meanwhile, the latest leg of downtick over the past hour or so could be solely attributed to a modest pickup in the US Dollar demand. Despite softer US consumer inflation figures, a sudden turnaround in the US Treasury bond yields underpinned the greenback demand and further collaborated to the pair’s ongoing slide to over one-week lows.

From a technical perspective, a follow-through selling will confirm a near-term bearish break below the 50% Fibonacci retracement level of the 0.6865-0.7022 recent up-move and set the start for a further near-term downside, even below the 0.6900 handle, towards retesting multi-month lows support near the 0.6865 region.

Technical levels to watch

 

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