Poor Sentiment Dragging the AUD/USD Down

The AUD/USD is continuing its battle with the 0.7100 level in another bearish looking day.

Both the AUD/USD and NZD/USD are weaker as Asian trade gets underway. Australian consumer sentiment has come in worse than expected, showing a 3% drop. That was below the previous measure of negative 2.3%.

Markets are still waiting to hear more from the US President regarding trade and the USD has been in a tightish range for the moment.

So the weakness is really just a reflection of where the AUD is at currently.

Aussie Outlook

The AUD/USD is still at the major level of 0.7100 and we are trading up and down around here for the time being.

I still feel that it is the round numbers that we need to watch at the moment. And while we maintain this downtrend and channel, I suspect 0.7050 and 0.7000 will be the keys.

Any further USD upside will see us take out the lows and put more pressure on the already struggling commodity currencies.