Is There More Downside Ahead for the AUD/USD?
Rowan Crosby • 1 min read
The AUD/USD held up as best it could last week, before taking a tumble on Friday. A stronger than anticipated NFP number coupled with decent wage growth in the US hurt the majors and the AUD/USD was no exception.
By weeks end the AUD/USD was at 0.7100 and things aren’t looking all that good as the week rolls on.
The new tariffs that Trump is looking to potentially hit China with are only going to hurt the AUD. Australia is a big exporter to China. So a weak Chinese economy is not what we want to see.
And if the USD continues to rally than we are likely to see more pressure to the downside.
This week employment is the big data point out of Australia. While the US has CPI, PPI and retail sales as the major numbers.
The AUD/USD ultimately gave up the major level at 0.7200 and fell away to 0.7100 to close the week out.
We are still following the downward channel and that means we are likely to see further weakness ahead. 0.7000 is now a distinct possibility.
But 0.7050 would be a test of the lower trendline. Either way, the pressure continues to mount on a struggling Aussie.