AUD/USD: Bears re-take 0.69 as risk worsens
By FXStreet FXStreet (Bali) – AUD/USD has been selling off since the start of trading in Tokyo, initially finding some bids post NY close up until 0.6925, only to abruptly reverse course and just minutes ago break below 0.69.
AUD pressured as risk worsens
The spot AUD/USD printed its lowest at 0.6893 as bouts of risk aversion send SP500 futures lower, while see 30-yr US bonds find a nice bid. Gold has also been upticking since Tokyo came online, reflecting heightened risk adverse conditions. As per copper, a major driver of AUD, no much change in the rate has been noted. With regards to USD/CNH, another asset to assess AUD/USD intrinsic value, the rate has been trading decisively higher since the NY close, applying downside pressure on AUD/USD.
AUD/USD technicals
According to Valeria Bednarik, Chief Analyst at FXStreet: “The long term bearish picture remains firm in place, although a short term upward corrective extension could not be dismissed at the time being, given that the 1 hour chart presents a bullish tone, as the technical indicators are barely retreating from overbought territory, whilst the price remains well above a bullish 20 SMA. In the 4 hours chart, the price is above a flat 20 …read more
Source:: FX Street
