AUDUSD Faces Possible Pressure Amid US-China Tensions and Key Level

These past few days saw risk sentiment quite erratic because of the various economic issues in various countries. Generally though, the risk sentiment of the market is off. The AUDUSD was able to gain a bit of momentum upward in the past days. However, the pressure may move the AUD lower as it is a risk off currency.

Possible Fundamental Effects to the AUD

First is the US-China tensions. During the earlier part of the week, the US and China have been creating tirades against each other about which country spread the Coronavirus.

Fortunately for the AUD, China’s announcement of new security laws in Hong Kong was able to spark an upward movement in the AUD.

Technical Outlook of the AUDUSD

However, the upward movement may be temporary as the AUDUSD is approaching a key level of resistance at the 0.66620. With this level being a strong level, the AUDUSD may get stopped in its tracks and perform a steep downward movement.

At the meantime, its short term uptrend is still valid with a hit at minor support level at 0.65220. Should it continue to go higher, the 0.66620 is likely to push it back down to lower levels also following the risk off sentiment of the market.

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