AUD/USD Signal Today 09/04: Downtrend to Continue (Chart)
Bearish view
- Promote the AUD/USD pair and set a take-profit at 0.5860.
- Add a stop-loss at 0.6100.
- Timeline: 1-2 days.
Bullish view
- Set a buy-stop at 0.5985 and a take-profit at 0.6100.
- Add a stop-loss at 0.5860.
The AUD/USD exchange rate continued its sturdy downward pattern, reaching a low of 0.5970, its lowest stage since 2020 on the onset of the pandemic. It has dropped within the final three straight days, making the Aussie one of many worst-performing currencies within the developed world. It’s down by nearly 7% from its highest stage this 12 months.
China and USA commerce conflict escalates
The AUD/USD pair has been in a robust downward pattern after Donald Trump began a commerce conflict as he seeks to stability commerce with different nations. In a press release final week, he introduced ‘reciprocal’ tariffs towards all nations.
He launched a ten% tariff on all items from Australia, a rustic that the US has a commerce surplus with. He cited some unfair commerce relations, noting that Australia doesn’t settle for American animal merchandise like beef.
Australia, not like different nations, has stated that it’ll not retaliate towards the US, arguing that its reciprocal tariffs could be taxes. Nevertheless, the commerce conflict between the US and China escalated, with the US now charging China further tariffs. Which means that most Chinese language items are being charged 104%, which is able to have an effect on the 2 economies.
Australia is affected by the Chinese language economic system due to the huge quantity of products it buys from the nation. These merchandise embrace iron ore, pure gasoline, and coal. Subsequently, a Chinese language financial slowdown will doubtless have an effect on the Australian economic system.
China has vowed to struggle to the top, that means that the commerce conflict may go on for some time. On the similar time, officers have hinted that they may launch a stimulus package deal to spice up the economic system.
The following key catalyst for the AUD/USD trade charge would be the upcoming minutes of the final assembly by the Federal Reserve.
AUD/USD technical evaluation
The day by day chart reveals that the AUD/USD pair has been in a robust sell-off previously few days. It moved from the year-to-date excessive of 0.6415 to a low of 0.5935, its lowest level in years.
The pair has dropped beneath the important thing assist at 0.6085, its lowest level on February third. It has remained beneath the 50-day and 100-day Exponential Shifting Averages (EMA), whereas the Relative Energy Index (RSI) has pointed downwards.
Subsequently, the pair will doubtless proceed falling as sellers goal the last word assist of the Murrey Math Strains at 0.5860.
