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Thomson Reuters
Aug 08 - 03:48 PM
AUD/USD - COMMENT-Sputtering AUD/USD Rallies Hint At 0.73 Test
First appeared on eFXplus on Aug 08 - 01:30 PM

AUD/USD bulls should be growing frustrated with fizzling attempts to rally. Two assaults on the daily cloud have failed and the pair remains anchored near the 10- and 21-DMAs. Holding below the daily cloud base and 55-DMA suggests new trend lows are likely.
A break of 0.7300 support could mean a deep slide is due for AUD/USD.
The effect of PBOC actions from last week are fading, as are yuan gains.
U.S.-China trade tensions are escalating and USD/CNH continues to trade near trend highs as the greenback's appeal remains elevated.
Since the Aussie remains a proxy for the yuan any weakness in the Chinese currency will in turn weigh on the Aussie.
Commodities prices are also helping to limit AUD/USD gains. With concerns about global trade friction hurting economic growth, oil futures (CLv1) have set a new low after peaking in July, while and copper futures (HGv1) are pinned down near their 2018 low. These sputtering commodities prices provide additional headwinds for AUD/USD.

chart: Click here

Source:
Thomson Reuters IFR Markets

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