According to analysts from the National Australia Bank (NAB), the AUD/USD has given an “ominous” signal after dropping below important trendline support below 0.7350. NAB notes that they are looking for the US to go ahead with another $200 billion in tariffs on China, and this recent fall comes ahead of confirmation of the new tariffs, a move that “bodes particularly poorly”.
NAB went on further to note that given the current bearish environment, it leads them “to generate expectations for a revisit to “¦ lows below 0.69,” but it all hinges on US-China tariffs: “If Trump doesn’t pull back on the next phase of tariffs against China, this now looks increasingly likely”.
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