AUD/USD analysis: bounce limited by Trump's tariff plan

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7759

Aussie under pressure despite dollar's broad weakness, amid Trump's plan to impose tariffs on metals.
Australia to release fresh inflation and services data this Monday.

The Aussie was unable to hold on to gains against its American rival, despite this latest broad weakness, and the AUD/USD pair closed Friday in the red at 0.7759, as despite broad dollar's weakness, the Aussie suffered from the poor performance of worldwide equities and Trump's announced plan to impose tariffs on steel and aluminum, as Australian economy is mainly based on commodities' exports. Australia will have a more interesting macroeconomic calendar this week, starting on Monday with the release of the AIG Performance of Services Index for February and TD Securities inflation for the same month. The pair managed to close the week above the 61.8% retracement of the December/January rally at 0.7740 after briefly piercing it late Thursday, and still clearly bearish according to technical readings in the daily chart, as the pair is developing well below a bearish 20 DMA, while technical indicators maintain their bearish slopes well into negative territory and nearing oversold readings. Shorter term, and according to the 4 hours chart, the risk also leans towards the downside, as technical indicators remain within negative territory, while a bearish 20 SMA caps advances, now acting as an immediate resistance at 0.7775.

Support levels: 0.7740 0.7715 0.7680

Resistance levels: 0.7775 0.7820 0.7850

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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