AUD/USD: drifting higher, but still below key foothold 200 week ma level

Currently, AUD/USD is trading at 0.7944, down -0.27% on the day, having posted a daily high at 0.7971 and low at 0.7914.

AUD/USD is drifting within a minor recovery after the consolidation of losses below 0.7941 (1st Aug low) through the European shift. The Aussie is fragile to developments in the relationship between USA and China in terms of trade; the recent fall-out there has been weighing on the Aussie since the Democrats backed Trump on the China-trade probe yesterday. 

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Metals are mixed but mostly in the red and WTI is down today, testing $49.20 support at the time of writing with a failed hourly triple top. Gold, on the other hand, is picking up the risk-off bid while USD/JPY is stabilising after the yen took the dollar below 110.00 again only to meet strong demand a few pips below for the second time since the turn of the month. 

AUD/USD levels

Analysts at Commerzbank explained that AUD/USD has failed to maintain a foothold above its 200 week ma at 0.8004 and has now eroded its accelerated uptrend. "We also have TD resistance at 0.8097/0.8100 and divergence of the daily RSI and it is now easing lower. However dips lower should remain well supported by .7874/.7836 the April 2016 high. While above the uptrend at .7725 we will assume it is capable of further gains longer term," argued the analysts at Commerzbank.