- The AUD/USD goes back to the 0.6280 area during the American session on Monday after reaching a maximum of 0.6340.
- The feeling of the US dollar ranges in the midst of new commercial holders and comments on the recession.
- The key resistance is observed around 0.6320 and 0.6410; The support is about 0.6290 and 0.6280.
The Australian dollar (Aud/USD) resigned from its previous force on Tuesday, falling from the maximum of the session about 0.6340 to quote closer to the area of 0.6280 during the North American hours. The reversal occurred when the American dollar index (DXY) tried a modest rebound since its minimum of three years near the 99.00 mark.
This change in tone followed the comments of US officials who suggested a reduction in recession risks and advances in commercial negotiations with Europe, although concerns about the tariff struggle not resolved between the US and China persist.
Daily summary of market movements: the feeling of the USD fluctuates in mixed economic signals
- Kevin Hasset of the US National Economic Council dismissed the fears of recession, temporarily promoting the tone of the dollar.
- Specific tariffs by sectors in the US are still probable, especially aimed at electronics and chips, despite a general pause of 90 -day tariffs.
- Commercial conversations with the EU show advances, helping to limit the widest fears of the market on a large -scale global tariff climb.
- The consumer’s feeling index of the University of Michigan registered a sharp fall, suggesting that households are concerned about the increase in costs.
- The yields of the treasure bonds remain under pressure, reflecting a continuous demand of bonds in the midst of concerns about global growth.
- The Australian dollar remains vulnerable due to its dependence on exports to China and the growing commercial tensions.
- Investors await the key data of US retail sales on Wednesday and Australian employment data on Thursday to provide address tracks.
Technical analysis
Technically, the AUD/USD shows signs of short -term bullish impulse despite Monday’s setback. The Relative Force Index (RSI) is about 55, reflecting a positive to positive tone, while the convergence/divergence of mobile socks (MACD) continues to present a green bar and emit a new purchase signal. The pair is currently being negotiated in the middle of its daily range between 0.6274 and 0.6342, lacking a decisive breakup.
The short -term mobile socks, such as the 10 -day exponential mobile average (EMA) and the single mobile average (SMA) of 20 days, support the rise, while the 100 -day SMA is also aligned with the bullish pressure. However, the 200 -day SMA at 0.6483 remains a roof that could limit future rebounds.
Support levels are identified at 0.6291, 0.6286 and 0.6281. The resistance is located at 0.6324, followed by 0.6413 and the long -term limit in 0.6483. The technical perspective is inclined towards the short term, but a clear break is needed above 0.6340 to confirm the continuation.
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
