- Chinese Commerce Ministry voices concerns over Australi’s 5G security decision.
- US Dollar Index extends its upside toward mid-95s.
- AUD/USD daily losses exceed 50 pips on Thursday.
The AUD/USD pair came under a renewed selling pressure in the early NA session and fell to a fresh weekly low at 0.7267. As of writing, the pair was trading at 0.7272, losing 80 pips, or 1.07%, on the day.
Earlier today, Australia announced its decision to ban Huawei and ZTE from selling 5G technology and the Chinese Commerce Ministry published a statement saying that they were very concerned about this decision, which could potentially have a negative impact on bilateral business interests. “We hope the Australian government will act in a fair and open way to allow Chinese businesses to develop in Australia,” the publication read.
On the other hand, the US Dollar Index is making a decisive recovery after closing the previous five trading days with losses and is putting an additional bearish pressure on the pair. At the moment, the DXY is up 0.33% on the day at 95.40. Today’s data from the U.S. showed that weekly initial jobless claims fell to 210K from 212K a week ago and house prices rose 0.2% in June compared to the market expectation of 0.3%.
The Australian economic docket won’t be featuring any significant macroeconomic data releases on Friday, and the greenback is likely to remain as the sole driver of the pair’s price action.
Technical outlook
The immediate support for the pair aligns at 0.7250 (Aug. 17 low) ahead of 0.7200 (psychological level/Aug. 15 low) and 0.7160 (Dec. 23, 2016, low). On the upside, resistances could be seen at 0.7330 (daily high/20-DMA), 0.7375 (50-DMA) and 0.7445 (100-DMA).
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