- Renewed US-China trade uncertainty continued weighing on the Aussie.
- Weakness below 100-day SMA support prospects for a further decline.
The AUD/USD pair witnessed some follow-through selling for the third consecutive session on Tuesday and dropped to over two-week lows amid renewed US-China trade uncertainty.
The recent pullback from the vicinity of the very important 200-day SMA – has now dragged the pair to a support marked by 38.2% Fibonacci level of the 0.6671-0.6930 positive move.
Meanwhile, oscillators on hourly charts maintained their bearish bias and just started drifting into the negative territory on hourly charts, supporting prospects for a further slide.
The pair’s near-term bearish outlook is further reinforced by the fact that bulls on Tuesday failed to defend 100-day SMA despite better-than-expected Aussie NAB Business data.
Hence, some follow-through weakness, possibly towards challenging the 0.6800 round-figure mark (50% Fibo.), now looks a distinct possibility ahead of Trump’s trade speech later today.
On the flip side, any attempted recovery now seems to confront some fresh supply near 23.6% Fibo. – around the 0.6865 region – ahead of the 0.6900 handle and the 0.6930 supply zone.
AUD/USD daily chart
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