It’s a well-known fact that when China sneezes, Australia gets a cold. The commodity-producer country depends on its Asian neighbor to keep its economy alive, as most of its exports end up being shipped to China. The trade war between Beijing and Washington took its toll on the Australian economy, hence in AUD/USD, which fell in October to a one-decade low of 0.6670 back in October. Quite a slump considering the pair topped at 0.8135 in January 2018, shortly before the trade war started. It is hard to tell whether the RBA was more concerned – back then, or now. Indeed, policymakers needed the Aussie to be cheaper, but not at the cost they finally had to pay.
AUD/USD: Aussie sidelined below 0.6881 resistance
AUD/USD is under bearish pressure near the January lows while trading below its main daily simple moving averages (SMAs) suggesting an underlying bearish bias.