Australian Dollar struggles as trade uncertainties continue

• The Australian Dollar faced headwinds amid slower progress on US-China trade talks.
• US Dollar strength pushed the Aussie lower, despite positive global sentiment.
• Economic uncertainty continues, with key inflation and job data releases ahead.
• Market focus remains on the US Federal Reserve's next moves and global trade resolutions.

The Australian Dollar (AUD) faced some pressure in the market after disappointing progress on US-China trade negotiations. Although the global risk environment remains positive, tariffs and trade policy concerns impact the Aussie's movement. Investors are now awaiting key US data for further direction.

Daily digest market movers: No progress on US and Chinese talks

• The Australian Dollar struggles as trade uncertainties between the US and China weigh on market sentiment.
• The US Dollar (USD) remains strong, continuing to impact other currencies, including the Australian Dollar.
• Traders are cautious ahead of the upcoming inflation data release from the US, which is expected to influence market moves.
• Despite positive global market sentiment, the Aussie remains under pressure, with limited domestic catalysts.
• Global commodity prices saw a slight uptick, but the Aussie failed to capitalize on the gains.
• The Reserve Bank of Australia (RBA) remains in a holding pattern, watching international developments closely.
• Key economic data, such as Australian employment figures, are expected next week, with markets watching for surprises.
• The US-China trade talks are still a major focus, with little concrete progress on tariffs.
• Global markets have a general risk-off mood, curbing appetite for risk-sensitive currencies like the Aussie.
• The Australian Dollar continues to track the broader movements of the US Dollar in the absence of strong domestic drivers.
• China's economic outlook remains uncertain, impacting demand for Australian exports and putting further pressure on the Aussie.
• Commodity-linked currencies, including the Australian Dollar, are seeing mixed performances amid the global economic outlook.
• The Australian Dollar's next key test will be the release of upcoming economic data, particularly job and inflation numbers.
  

Technical Analysis

The Australian Dollar is showing some bearish signals as it trades near 0.6400. The Relative Strength Index (RSI) remains neutral at 53.11, while the Moving Average Convergence Divergence (MACD) continues to indicate a buy signal, suggesting a potential for upward movement. The key support levels are 0.6394, 0.6385, and 0.6376, with resistance at 0.6413, 0.6418, and 0.6423. Moving averages also suggest a mixed outlook, with the 20-day SMA (0.6394) supporting bullish movement, while the 200-day SMA (0.6461) is bearish. The Australian Dollar remains range-bound, with traders focusing on the upcoming economic releases for direction.