The AUD/USD currency pair flashing red and representing losses for the 3rd consecutive day. It’s mainly due to the United States and China’s political tensions and weaker daily Chinese Yaun fix by the Peoples Bank of China.
As of writing, the AUD/USD currency pair is trading at 0.6734, representing 0.20% losses on the day. The pair AUD/USD is flirting with the lower edge of the bear flag on the daily chart.
The United States House of officials approved a bill regarding human rights in Hong Kong on Tuesday, moving the Hong Kong Human Rights and Democracy Act of 2019 a step closer to becoming law.
China warned the United States due to interfering in its internal matters and also gave a warning against the United States policy.
Therefore, the risk assets have come under pressure, and the safe havens like the Japanese Yen and gold were found on the bullish track.
AUD/USD Technical Side
On the technical side, the close above below the 0.6737 will confirm a breakdown and create room for a decline to levels below 0.6520. On the way lower, the pair may find support at 0.6671 (Oct. 2 low).
The pair is trading bearish, and it’s very likely to continue its bearish momentum until 0.6700. The MACD and Stochastics are holding in the bearish zone, suggesting odds of further selling in the Aussie.
Daily Support and Resistance
Pivot Point 0.6792
Consider staying bearish below 0.6745 to target 0.6720 today. All the best!