- AUD/USD trades higher around 0.6390 but remains under pressure due to China-linked fears.
- Momentum indicators suggest that the short-term trajectory is favoring a sideways trend.
- Weekly low emerges as the key support aligned to 0.6350 psychological level.
AUD/USD recovers from the previous day’s losses, trading higher around 0.6390 during the early hours of the European session on Friday. The Australian Dollar (AUD) experienced downward pressure due to the Chinese economic fears along with US-China trade tensions. Additionally, investors are expecting a dovish stance by the Reserve Bank of Australia (RBA) regarding the interest rate-hike cycle.
Moreover, Chinese President Xi Jinping's decision not to attend the G20 leaders' summit in New Delhi this upcoming Saturday is anticipated to further intensify the existing strain in the already fragile and deteriorating relationship between China and the United States (US), particularly with the presence of US President Joe Biden at the event.
The Moving Average Convergence Divergence (MACD) line stays below the centerline but lies above the signal line. This configuration indicates that the recent momentum is relatively tepid and in a sideways direction.
The pair could find immediate support around the weekly low at 0.6357 level lined up with the 0.6350 psychological level. A firm break below that level could push the AUD/USD pair to navigate the region around the 0.6200 level.
On the upside, the 0.6400 psychological level is acting as a key resistance, following the 21-day Exponential Moving Average (EMA) at 0.6454 aligned to the 23.6% Fibonacci retracement at 0.6483 level.
In the near future, it is anticipated that the AUD/USD pair will continue to exhibit a bearish outlook, provided that the 14-day Relative Strength Index (RSI) remains below the 50 level.
AUD/USD: Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.