AUDUSD: Better Services PMI Failed to Attract Bids

AUDUSD continues south for 12 straight trading session, giving up 0.37 percent at 0.6772 at fresh 7 month lows, despite Australia Commonwealth Bank Services PMI came up to 52.3 in July from previous 51.9. President Trump rattled Friday the markets as he announced an additional 10% tariffs on the remaining USD300 billion worth of US imports from China, starting September 1st. Meanwhile the Chinese yuan hits lowest level on record at 6.9225.

AUDUSD managed to rebound from the daily low at 0.6747 while already running twelve consecutive negative sessions. On the downside first support now stands at 0.6747 today’s low, a level that if breached will enhance the slide toward the 0.6740 the low from December 30, 2018. On the upside immediate resistance stands at 0.6807 the 50 hour moving average while more offers will emerge at 0.6842 the 100 hour moving average. The short term momentum for AUDUSD is bearish for now and a move to lower levels looks possible; the RSI in the daily chart stands at 26.73 and is in oversold levels, so a sharp rebound can’t be ruled out.Don’t miss a beat! Follow us on Twitter.