The AUD/USD currency pair extended losses on Friday to end the session below 0.6800 after the US non-farm payrolls data. The currency pair had appeared to conjure a rebound in the late trading hours but this did not materialize.

The UAD/USD currency exchange rate has been on a downward movement for the better part of the last two weeks since topping 0.7090 on July 19.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a busy week, where President Trump and the Federal Reserve made major announcements to go along with the flurry of economic data.

On Wednesday, the Federal Reserve cut the base interest rate by 25 basis points to in amove aimed at stimulating economic growth in a challenging global environment. Then Trump followed this with the announcement of 10% trade tariffs on $300 billion worth of Chinese goods.

And on Friday, the US non-farm payrolls came in line with expectations at 164k jobs while the unemployment rate remained steady at 3.7%, also in line. Wage growth did beat expectations with 0.3% MoM growth for July and 3.2% YoY growth versus expectations of 0.2% and 3.1%, respectively.

AUD/USD Technical Analysis (the 60-min Chart)

From a technical viewpoint, the AUD/USD currency pair appears to be trading om sharp bearish movement as it aims to complete a bearish XABCD pattern. This has created interesting some compelling opportunities for both the bulls and the bears.

The bulls will be targeting bullish profits in the hope of a rebound towards the 0.6821 level while the bears will look forward to a continuation of the current bearish run by targeting profits at around 0.6763.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a descending channel, which dates back to December last year. This pattern illustrates how the pair has been under bearish pressure over the last seven months.

There have been a series of rebounds but the general view remains bearish. Therefore, the bulls will be targeting long-term profits at around 0.6850 or higher at 0.6900 while the beats will look further down below 0.6747 for opportunities.

In summary, the AUD/USD currency pair experienced a massive plunge after Trump announced trade tariffs on Chinese goods. This is not good for China, and since it is Australia’s biggest customer, the Aussie has been subjected to pressure.