- AUD / USD Outlook color mitigate uncertainty because traders strive for the impact of Trump decisions.
- Analysts reduced the prospects for growth in China and the US.
- The US report by PMI discovered a weaker business activity.
AUD / USD Outlook color mitigate insecurity because traders measure the impact of Trump decisions and comments on the global economy. Moreover, Aussie lacked direction due to the darkened look for growth in the US and China.
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The dollar recently recovered after Trump pulled his comments about firing fodder. However, the rally had little impact on the price of AUD / USD. Participants in the market are more focused on the influence of recent events on the global economy.
Analysts reduced the prospects for growth in China and the United States because of the recent warfare. Australia will suffer if the Chinese economy further slows down, because it is his largest trading partner. Therefore, escalation in the trade war, the Australian dollar is likely to hurt.
However, the dollar will also fall in case of US recession. This will allow Aussie to remain stable. Fortunately, the recent comments from the White House showed willingness to lower tariffs in China. However, now they said it would not be the first to move. If tariffs can be reduced, the two countries could work at the Trade Agreement to end the war.
Meanwhile, market participants observed the US report, which revealed less business activities. The composite PMI fell from 53.5 to 51.5 as the business activity of the service sector sector has fallen. More data on decline will increase the pressure in fed on the schedule to reduce interest.
AUD / USD Key events Today
AUD / USD Technical Outlook: 0.6400 Key resistance
On the technical page, the price of AUD / USD trades in a narrow range around the key 0.6400 level. Initially, the bulls were in lead, guarding the price above the 30th. However, the bears become stronger and the SMA pierced. At the same time, RSI broke down 50 levels, showing a stronger bear momentum.
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However, at this point, the action price can only be described as in the range. Not making high lower or lower lower, which means bears and bulls almost equally match. If the bears become stronger, AUD / USD will target the key level 0.6200. On the other hand, if the bulls regain swing, the price will break above 0.6400 to make new high and teaching Usttrend.
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