The AUD/USD pair recovers slightly after plummeting to a fresh four-year low near 0.6100 but is still more than 1.10% down in Monday’s European session. The Aussie pair faces a sharp sell-off as Antipodeans pay the cost of being leading trading partners of China.Over the weekend, United States (US) President Donald Trump imposed 10% tariffs on China and 25% on Canada and Mexico. This led to a sharp decline in the appeal of the Australian Dollar (AUD), which is a proxy for China’s economic outlook.Apart from US tariffs on China, the Australian Dollar (AUD) has also weakened on the domestic front amid growing expectations that the Reserve Bank of Australia (RBA) will pivot to policy normalization from the policy meeting on February 18.Meanwhile, the US Dollar (USD) has strengthened as Trump’s tariffs has improved its safe-haven appeal. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, climbs above 109.50.In Monday’s session, investors will focus on the US ISM Manufacturing PMI for January, which will be published at 15:00 GMT.AUD/USD posts a fresh four-year low around 0.6100. The 20-week Exponential Moving Average (EMA) near 0.6375 slopes downwards, suggesting that the overall trend is bearish. The 14-week Relative Strength Index (RSI) oscillates inside the 20.00-40.00 range, indicating a strong bearish momentum.More downside would appear if the pair breaks below the immediate support of 0.6100, which would let it towards the psychological support of 0.6000 and 26 March 2020 low of 0.5870.On the flip side, a sustenance move above the January 13 high of 0.6330 will open doors to the round-level resistance of 0.6400 and the December 5 high of 0.6456
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