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AUD/USD nears 2018 lows at 0.7145 amid trade tensions, copper sell-off

2018-9-7 14:01:39Trading Strategies
AUD/USD nears 2018 lows at 0.7145 amid trade tensions, copper sell-off

The offered tone around the Australian dollar keeps growing bigger as we head towards the Asia closing, knocking-off the AUD/USD pair sharply lower in a bid to test the 2018 low of 0.7143.

The Aussie got aggressively sold-off into intensifying risk-off trades, as markets weigh in another round of trade tensions, this time between the US and Japan, in light of overnight remarks from the US President Trump on Japan’s trade. The risk-off market profile helped put the bids under the greenback across its main competitors.

Meanwhile, a fresh sell-off seen in copper prices on Comex also added to weight on the resource-linked Aussie, as iron-ore and copper are key exports products of Australia. Comex copper futures are down -1.20% to $ 2.60 level. Also, Thursday’s reports that three Australian local banks hiked their mortgage rates continued to undermine the sentiment around the major.

Markets were also little impressed by mix Australian macro data, as the main event risk for today remains the US payrolls and wages data due later in the NA session at 1230 GMT.

AUD/USD Technical Levels

According to Valeria Bednarik, FXStreet’s Chief Analyst, “In the 4 hours chart, the pair has spent the day struggling around a flat 20 SMA, and below the larger ones, while technical indicators are stuck around their midlines, lacking directional strength. The pair would need to advance beyond 0.7235, the weekly high, to gain further bullish traction, eyeing then the 0.7300 price zone. Support levels:  0.7150 0.7120 0.7095. Resistance levels:  0.7230 0.7260 0.7300.”