FxWirePro: AUD/USD recovery attempts from new 4-month lows capped below 0.70 handle, Aussie dented on risk-aversion

AUD/USD chart - Trading View 

• AUD/USD opens with a bearish gap, slipped to fresh 4-month lows at 0.6962, Aussie dented on risk-aversion.
   
• Trump's renewed threat to slap a 25% tariff on a mind-boggling USD525 billion of Chinese goods will keep AUD on the defensive.
   
• Better-than-expected China services PMI fails to impress Aussie bulls. Minor recovery attempts sold off below 0.70 handle. 
   
• China's Caixin services PMI for April came in at 54.5 vs. 52.8 expected and 54.4 last. Composite Output Index eased slightly to 52.7 in April from March’s reading of 52.9.
   
• AUD/USD is likely to slide further if the risk-off worsens in Europe. Technical studies also remain bearish.
   
• Next bear target lies at 61.8% Fib at 0.6955 and then 0.6862 (78.6% Fib). 5-DMA is immediate resistance at 0.7011. Break above could see gains upto 0.7065.

Support levels - 0.6955 (61.8% Fib), 0.69, 0.6862 (78.6% Fib)

Resistance levels - 0.70, 0.7011 (5-DMA), 0.7065 (21-EMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.