What Happened
The Australian Dollar dropped 0.25% to 0.7240 against the US Dollar during Thursday’s European trading session, underperforming against most major currency peers. The move is notable because it came despite broadly positive news from the Trump-Xi meeting — the kind of outcome that typically lifts the AUD given Australia’s deep trade ties with China.
Key Levels
Support:
- 0.7200 — round-number psychological floor and near-term demand zone
- 0.7160 — prior consolidation base and stronger structural support
Resistance:
- 0.7270 — immediate intraday resistance and recent session high area
- 0.7310 — short-term swing high; a break above here would signal renewed bullish momentum
Technical Picture
AUD/USD is trading below its short-term moving averages, which suggests the near-term trend remains under pressure. The pair has been unable to hold gains above the 0.7270 zone, keeping sellers in control on intraday timeframes. RSI (Relative Strength Index — a momentum indicator on a 0–100 scale) is drifting toward neutral-to-bearish territory, meaning there’s no strong oversold bounce signal yet.
What Traders Are Watching
- 0.7200 — a close below this level would likely accelerate selling toward 0.7160 and signal a meaningful shift in short-term sentiment
- 0.7270–0.7310 — bulls need a clear break and hold above this zone to regain control and target a move back toward 0.7350
- Any further headlines from US-China trade talks — the AUD is highly sensitive to China demand signals given the iron ore and commodity trade link
Bias
Bearish short-term. The AUD’s failure to rally on positive US-China trade news is a warning sign — when good news fails to lift a currency, it suggests underlying selling pressure. Until price reclaims 0.7270 convincingly, the path of least resistance remains lower.
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