- This week sees a slow-rolling start for the AUD with little on the docket.
- Trade war fears to continue sapping momentum from bullish hopefuls.
The AUD/USD is continuing to cycle the 0.7100 handle as the new trading week gets underway with little bullish inspiration for Aussie traders to get the wheels turning.
The economic calendar is on the quiet side for the AUD this week, and the Aussie’s first major appearance will be during the Reserve Bank of Australia’s (RBA) latest Meeting Minutes, not due until Tuesday, but the RBA’s firmly-entrenched rut of little to no movement is unlikely to see AUD traders give much reaction to the Australian central bank, which has largely acted as window dressing for over two years, remaining stuck and unmoving on monetary policy while the Australian domestic economy remaining stuck in a cautious growth model.
Thursday will also be bringing Australia’s latest Unemployment numbers for September, but again the headline figure is broadly expected to remain steady at 5.3%, and the RBA is likely to remain perplexed at the Aussie economy’s continued ‘slack’ in its spare capacity.
Buyers continue to be shoved off-balance by the ongoing US-China trade spat, with Australia’s largest trading partner gritting for an economic slowdown at the hands of US trade tariffs, and Aussie bidders continue to fear knock-on effects within the Australian economy.
AUD/USD levels to watch
The Aussie sees continued downside opening below if the major pair’s sideways movement continues, and according to FXStreet’s own Valeria Bednarik, “the AUD/USD pair is stuck around the 38.2% retracement of its latest daily decline, contained by sellers around the 50% retracement of the same slide at 0.7140, the immediate resistance. Technical readings in the daily chart maintain the risk skewed to the downside, as the pair is developing well below bearish moving averages, while indicators have resumed their declines within negative levels, after bouncing from oversold readings. In the shorter term, and according to the 4 hours chart, however, the pair offers a mildly positive tone, as the pair holds above a bullish 20 SMA, while technical indicators have held in positive ground although with limited upward strength.”
Support levels: 0.7085 0.7040 0.7010
Resistance levels: 0.7140 0.7175 0.7200
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