“¢ Bulls once again fail near the 0.6935-40 supply zone amid a modest USD uptick.
“¢ The US GDP growth figures match consensus estimates and do little to influence.
“¢ The intraday slide seemed rather unaffected by Trump’s trade-related comments.
The AUD/USD pair extended its steady intraday decline and dropped to fresh session lows, around the 0.6915-10 region in the last hour.
The pair continued with its struggle to make it through the 0.6935-40 strong horizontal resistance and remained well within this week’s broader trading range. Mounting fears over a further escalation in the US-China trade tensions turned out to be one of the key factors keeping a lid on any runaway rally for the China-proxy Australian Dollar.
This coupled with a modest pickup in the US Dollar demand – supported by a strong bounce in the US Treasury bond yields and mostly in line US GDP growth figures, further collaborated to the pair’s intraday slide. Data released on Thursday showed that the US economic growth stood at 3.1% annualized pace during the first quarter of 2019.
The downtick seemed rather unaffected by the US President Donald Trump’s latest trade-related comments, saying that China wants to do a deal with the US, with bears now eyeing a follow-through weakness below the 0.6900 handle before positioning for any further depreciating move back towards multi-month lows.
Technical levels to watch
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