• Global Tariff war heats up as China imposed 34% tariffs on US goods

• Risk-off sentiment deepened; US$, Japan yen bought, AUD/JPY neared 87.70

• US yields, commodities fell as econ growth may slow

• AUD/USD fell below the 76.4% Fibo retracement of the 0.5510-0.8007 rally

• Pair hit a 5-year low of 0.6050 before slightly bouncing, was down -3.33%

• AUD/USD's sharp fall now has technicals highlighting downside risks

• Daily, monthly RSIs are falling & aren't oversold, implies downward momentum

• Monthly inverted hammer, move below DMAs, daily cloud reinforces bear signs

• Psychological 0.6000 level, April 2020 monthly low at 0.5980 are in focus

• Breaks of those impediments brings the 2020 yearly low into focus
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(Christopher Romano is a Reuters market analyst. The views expressed are his own)