• Trump reignites US-China trade war concerns and prompts some fresh selling.
• Reviving USD demand/uptick in the US bond yields add to the downward pressure.
• Traders now eye US macro data/Powell’s speech for some fresh impetus.
The AUD/USD pair came under some renewed selling pressure on Friday and has now reversed all of its gains recorded in the previous session.
The pair continued with its struggled to make it through the 0.7580 supply zone, with lingering US-China trade war fears to weigh on the China-proxy Australian Dollar. The US President Donald Trump raised the spectre of high US tariffs on imported cars and reignited fears of a trade war.
Adding to this, some renewed US Dollar buying interest, supported by a modest uptick in the US Treasury bond yields exerted some additional downward pressure on higher-yielding currencies - like the Aussie and further collaborated to the pair's softer tone.
Meanwhile, the prevalent negative trading sentiment around commodity space, especially copper, did little to revive demand for the commodity-linked Australian Dollar and assist the pair to build on overnight gains, led by broad-based USD weakness.
Moving ahead, today's important release of the US durable goods orders data and a scheduled speech by the Fed Chair Jerome Powell would now be looked upon for some meaningful impetus on the last trading day of the week.
Technical levels to watch
Immediate support is pegged near the 0.7540 level, below which the pair is likely to accelerate the slide back towards retesting the key 0.75 psychological mark. On the upside, sustained move beyond 0.7580 immediate resistance now seems to lift the pair further beyond the 0.7600 handle toward challenging its next major hurdle near the 0.7640-50 supply zone.
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
AUD/USD: Gains remain capped below 0.6500 after soft Australian CPI data
AUD/USD consolidates the latest uptick below 0.6500 in Wednesday's Asian trading, capitalizing on a modest optimism and a broad US Dollar weakness. The upside, however, remains capped by the softer Australian CPI inflation data for October. US data are next in focus.
USD/JPY stays pressured below 153.00, US data eyed
USD/JPY declines to over a two-week low below 153.00 early Wednesday as Trump's tariff threats continue to drive haven flows into the Japanese Yen. However, doubts over the BoJ's ability to tighten its monetary policy further should cap the USD/JPY downside ahead of US data.
Gold: Bear Cross cautions XAU/USD buyers ahead of US inflation test
Gold price has found fresh demand, looking to extend the previous rebound toward $2,650 in Wednesday's Asian trading. The ongoing US Dollar weakness and sluggish US Treasury bond yields allow Gold price to gain traction amid a cautiously optimistic market mood. US data awaited for fresh impetus.
Ripple's XRP sees decline as realized profits reach record levels
Ripple's XRP is down 6% on Tuesday following record profit-taking among investors as its percentage of total supply in profit reached very high levels in the past week.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.