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FxWirePro: AUD/USD fails to extend previous session's gains, faces downside risk amid US dollar strength

AUD/USD chart - Trading View 

AUD/USD was trading 0.49% lower on the day at 08:25 GMT, outlook remains bearish.

The pair has failed to extend previous session's gains and remains capped below 200-DMA.

Price action is consolidating break below 200-DMA, scope for further downside.

The Australian dollar remains vulnerable to market volatility and escalating trade tensions with China. 

A Chinese government agency announced to release reserves of key metals, including copper and aluminum to sustain the rising commodity prices.

The announcement weighed on commodities prices, dragging the Aussie lower. US dollar dynamics will continue to influence price action.

Technical bias is bearish. Focus on Powell's testimony for impetus. Scope for test of 61.8% Fib retracement at 0.7394.

Next immediate support lies at 55W EMA at 0.7445. On the flip side, retrace above 200-DMA will negate any bearish bias.
 

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