Aussie Pressured by Fed’s Push Back and China Beef Ban

The Australian dollar briefly rose above its
100-day moving average again this week in what appears to be a
false break after Federal Reserve officials pushed back on the
notion of negative U.S. rates. The currency had been stuck below
the rolling gauge since January but threatened to break above
amid the pricing in of negative rates by futures traders.
However, as markets roll-back those bets, the Aussie faces
renewed pressure — including a bearish technical reversal on
Monday. The escalation of trade tensions with China over beef
imports further indicates that the currency is unlikely to test
last month’s high in the medium term.

Bloomberg