The bearish momentum in the AUDUSD pair regained strength in the Asian trades this Thursday, as the Aussie was heavily sold-off into ongoing Australian political turmoil. What is next? Gain insight into the following 23 August AUDUSD Technical Analysis.
23 August, OctaFX – The political climate down under deteriorated on reports that the country’s PM Turnbull will not contend leadership vote, as heads into a second leadership challenge later today amid a lack of support.
Also, the news that the Australian Finance Minister Cormann tendered his resignation, added to the political woes and exacerbated the pain in the Aussie.
Australian Political Turmoil
The Australian political crisis fuels speculations that the Reserve Bank of Australia (RBA) could keep rates on hold for a longer period than markets’ expectations. Further, the sentiment around the higher-yielding also remains weighed down by the looming US tariffs on the Chinese goods that take effect on Thursday, as the US seeks to collect 25% duties on China’s imports.
Looking ahead, all eyes will remain on the US-China trade developments and US dollar price-action until the releases of the US manufacturing PMI and new home sales data, which may offer some short-lived trading impetus. Also, in focus remains the Day 1 of the annually held Jackson Hole Economic Policy Symposium for further momentum on the prices.
23 August AUDUSD Technical Analysis
Resistances: 0.7328 (5-DMA), 0.7350 (psychological levels), 0.7377 (50-DMA).
Supports: 0.7253 (Aug 17 low), 0.7200 (round number), 0.7162 (Jan 2017 lows).
This article about 23 August AUDUSD Technical Analysis was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.