The Australian dollar tumbled on as fear over trade gripped markets. Apart from the US-China trade relations, a rate decision and GDP will be closely watched. Here are the highlights of the week and an updated technical analysis for AUD/USD.
The Aussie dollar fell below 0.72, the lowest levels since January 2017. Concerns about global trade dominated the scene. A week that began with hopes for NAFTA saw these hopes fade and things became much worse, especially for Australia, with the intent of the US to push through with whopping tariffs on China. Imposing tariffs on $200 of goods would be a severe escalation and Australia will be affected as well. The A$ also suffered from a significant drop in capital expenditure, 2.5%, in Q2.
AUD/USD daily graph with support and resistance lines on it. Click to enlarge:
