Because the technical picture is showing signs of cracking
Price is now trading at a session low of 0.7296 and sellers are looking to try to find a break back below the key 0.7300 handle. If they do manage to do so, there isn’t much else buyers can count on apart from the Trump-Xi summit delivering a win for risk sentiment when markets open next Monday.
There is some added support around 0.7275-80 once below 0.7300 but given the run up, a break below the figure level should see a move back towards a test of the key hourly moving averages.
The bad news for buyers is that the topside break in overnight trading failed to lead to anything more substantial for the pair. Price climbed to its highest levels since August but then gave back gains thereafter.
That sets up a double-top pattern at the highs seen so far from 16 November and yesterday. And should sellers hold below the 0.7300 in US trading later, it’s not setting up to be a pretty technical picture ahead of trading next week. That of course, unless Trump and Xi can salvage a positive trade outcome. Anything else will spell bad news for the aussie against the dollar come Monday.