CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

AUD/USD: Flat lined in Asia, focus on politics

8/24/2018, 10:11:24 AMTrading Strategies
AUD/USD: Flat lined in Asia, focus on politics

Currently, the AUD/USD is trading in a sideways manner around 0.7245, having clocked a session low of 0.7240 earlier today.

The 14-hour relative strength index (RSI) is reporting oversold conditions, still, the battered Australian currency is not finding takers. 

The political uncertainty in Australia may bite the dust as a new Prime Minister could be appointed today, however, the resulting relief rally could be short-lived as the momentum studies (5-day, 10-day MAs) have turned bearish, courtesy of yesterday's 1.4 percent drop.

More importantly, the appointment of the new PM is unlikely to have a big impact on the Reserve Bank of Australia (RBA) outlook. As a result, the rate differential will likely remain biased toward the AUD bears.

AUD/USD Technical Levels

Resistance: 0.7257 (session high), 0.7283 (hurdle as per the hourly chart), 0.7290 (200-hour moving average)

Support: 0.7224 (Aug. 14 low), 0.72 (psychological  hurdle), 0.7184 (61.8% Fib R of 2001 low/2011 high)