AUD/USD – Australian dollar lower in light-holiday trading

AUD/USD has posted slight losses in the Monday session. In North American trade, AUD/USD is trading at 0.6916, down 0.16% on the day. U.S markets are closed in the U.S. for the Memorial Day holiday, and there are no U.S. or Australian events on the calendar. On Tuesday, the U.S. releases CB Consumer Confidence. Investors are looking ahead to events later in the week, as Australia posts Private Capital Expenditure on Wednesday and the U.S. releases first-quarter GDP on Thursday.

Trade tensions between the U.S. and China escalated last week, but the Aussie managed to post gains. A trade deal between the two super-economies has not materialized, despite assurances from U.S. officials that substantial progress has been made. China has reacted angrily to U.S. sanctions on Huawei and has suspended trade talks with the U.S. Although negotiations will likely resume at some point, investors remains jittery, and this could weigh on the Australian dollar.

U.S. indicators ended the week on a disappointing note, as April durable goods orders were softer than expected. Durable goods orders slumped 2.1%, just below the estimate of -2.0%. This marked the sharpest decline since January 2018. The core reading slowed to 0.0%, down from 0.4% a month earlier. The U.S. economy has been performing well, and the economy will receive a report card on Thursday, with the release of Preliminary GDP for the first quarter, which is expected to post a strong gain of 3.1%. The initial GDP reading showed a gain of 3.2%, crushing the estimate of 2.2%. Will the revised release also beat expectations? If so, traders can expect the U.S. dollar to post broad gains.

Markets in holiday mood

MEU elections not so bad for EUR or GBP

European elections 2019: Power blocs lose grip on parliament

AUD/USD Fundamentals

Monday (May 27)

  • There are no events on the schedule

Tuesday (May 28)

  • 10:00 US CB Consumer Confidence. Estimate 130.1

*All release times are DST

* Key events are in bold

AUD/USD for Monday, May 27, 2019

AUD/USD May 27 at 11:35 DST

Open: 0.6927 High: 0.6939 Low: 0.6916 Close: 0.6916

AUD/USD Technical

S3 S2 S1 R1 R2 R3
0.6668 0.6744 0.6825 0.6968 0.7085 0.7190

AUD/USD showed little movement in the Asian session. The pair posted small losses in European trade and this trend continues in North American trade

  • 0.6825 is providing support
  • 0.6968 is the next resistance line
  • Current range: 0.6825 to 0.6968

Further levels in both directions:

  • Below: 0.6825, 0.6744 and 0.6686
  • Above: 0.6968, 0.7085, 0.7190 and 0.7240

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

Latest posts by Kenny Fisher (see all)