**AUD/USD Price Forecast: Bulls Ease Up as US Dollar Recovers Before Trade Talks**
*Based on analysis originally by Anil Panchal for FXStreet*
—
The Australian Dollar (AUD) suffered selling pressure against the US Dollar (USD) as the forex market witnessed a generally stronger greenback ahead of much-anticipated US-China trade talks. The evolving geopolitical dynamics and shifting macroeconomic indicators continue to weigh heavily on the AUD/USD currency pair. The following analysis provides a detailed overview of factors influencing the pair, relevant technical levels, and potential outlooks drawing from multiple reputable sources.
—
### Context: AUD/USD Faces Renewed Pressure
– The AUD/USD pair slipped lower as traders anticipated renewed negotiations between the United States and China.
– The general risk-off sentiment in global markets spurred investors to seek safety in the US Dollar, reducing demand for the Aussie.
– Signs of an economic slowdown in China and mixed economic data out of Australia have further dented bullish ambitions for AUD.
– Broader macro themes, including trade uncertainties and central bank policy divergency, continued to favor the dollar over higher-risk currencies like the Australian dollar.
—
### Recent Market Developments and Catalysts
#### US Dollar Strengthens Across the Board
– The USD made notable gains against most major peers as investors flocked to the world’s reserve currency in search of stability.
– Progress in US macroeconomic data, including job creation and consumer sentiment, bolstered the greenback’s position.
– Dovish stances from other central banks globally contrasted with the relatively steady outlook of the US Federal Reserve, further fortifying USD strength.
#### US-China Trade Talks and Market Sentiment
– The potential resumption of high-level talks between Washington and Beijing on trade stirred market caution, as uncertainty loomed about the outcome.
– Asian equity markets echoed nervousness, registering declines ahead of the scheduled discussions.
– China’s recent slowing growth, outlined by a slew of underwhelming economic data releases, has led to increased caution on commodities and risk-linked currencies.
#### Australian Economic Data Remains Mixed
– Australia’s domestic data, including retail sales and employment reports, has painted a mixed economic picture.
– Weaker-than-expected retail sales and stagnant wage growth have dented prospects for an earlier recovery.
– Despite occasional upticks in local economic activity, overall momentum has stalled.
—
### Technical Analysis: Key Levels in Focus
**Short-term Technical Outlook:**
– The AUD/USD struggled to build on rebounds and has faced resistance near the 0.7050 region.
– Selling pressure intensified below 0.7020, opening the door for further declines toward 0.7000 and possibly the psychologically significant 0.6950 support level.
– Downside momentum indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), both flagged persistent bearish sentiment.
**Crucial Support and Resistance Levels:**
– **Immediate Support:** 0.7000 (psychological
Read more on AUD/USD trading.