“¢ Trump reignites US-China trade war concerns and prompts some fresh selling.
“¢ Reviving USD demand/uptick in the US bond yields add to the downward pressure.
“¢ Traders now eye US macro data/Powell’s speech for some fresh impetus.
The AUD/USD pair came under some renewed selling pressure on Friday and has now reversed all of its gains recorded in the previous session.
The pair continued with its struggled to make it through the 0.7580 supply zone, with lingering US-China trade war fears to weigh on the China-proxy Australian Dollar. The US President Donald Trump raised the spectre of high US tariffs on imported cars and reignited fears of a trade war.
Adding to this, some renewed US Dollar buying interest, supported by a modest uptick in the US Treasury bond yields exerted some additional downward pressure on higher-yielding currencies – like the Aussie and further collaborated to the pair’s softer tone.
Meanwhile, the prevalent negative trading sentiment around commodity space, especially copper, did little to revive demand for the commodity-linked Australian Dollar and assist the pair to build on overnight gains, led by broad-based USD weakness.
Moving ahead, today’s important release of the US durable goods orders data and a scheduled speech by the Fed Chair Jerome Powell would now be looked upon for some meaningful impetus on the last trading day of the week.
Technical levels to watch
Immediate support is pegged near the 0.7540 level, below which the pair is likely to accelerate the slide back towards retesting the key 0.75 psychological mark. On the upside, sustained move beyond 0.7580 immediate resistance now seems to lift the pair further beyond the 0.7600 handle toward challenging its next major hurdle near the 0.7640-50 supply zone.
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