AUD/USD touches a low of 0.6968 on the day
And we’re only a couple of pips away from testing near-term support from last week’s lows around 0.6963-67. The aussie continues to be the weakest performing major currency today as US-China trade tensions continue to weigh, but also as the offshore yuan continues to be pressured as well.
In turn, that has helped to keep the dollar bid in the European morning with USD/CNH rising above 6.90 and looks set for its biggest daily gain in nine months.
As for AUD/USD, the near-term bias continues to favour sellers right now as price holds below the key hourly moving averages. If sellers can break the support levels seen from last week, expect the downside pressure to intensify further.
It’s all about the risk mood in markets right now and things aren’t getting any better. US equity futures are now down by 1.4% (session lows) and 10-year Treasury yields are also off by 4.8 bps to 2.419% (session lows).