“¢ The USD held steady despite the recent slump in the US bond yields.
“¢ Escalating US-China trade tensions/cautious mood weigh on the Aussie.
The AUD/USD pair extended its sideways consolidative price action and remained well within this week’s broader trading range, above the 0.6900 handle.
The pair continued with its struggle to make it through a resistance marked by the top end of a near two-week-old trading range – around the 0.6935 region amid lingering concerns about a further escalation in trade disputes between the world’s two largest economies.
Fears of a full-blown US-China trade war heightened further after the US President Donald Trump said on Monday that the US was not ready to make a trade deal and was seen as a key factor keeping a lid on any meaningful up-move for the China-proxy Australian Dollar.
Meanwhile, the US Dollar’s own safe-haven status helped offset the recent slump in the US Treasury bond yields to the lowest level since September 2017, which coupled with RBA rate cut speculations further collaborated towards capping gains for the major.
It would now be interesting to see if the pair is able to gain some traction or continues with its subdued/range-bounce price action amid relatively thin US economic docket – featuring the only release of Richmond Manufacturing Index.
Technical levels to watch
Share
