The Australian dollar was dealt a blow on Wednesday after the United States decided to impose tariffs on an extra $US200 billion ($270 billion) worth of imports from China, fuelling fears of a full-blown trade war. As a result the Aussie dollar fell to an overnight low of 0.7360, down almost 1 per cent since early June when worries of a trade war began.
Yesterday on the local data front the Westpac Consumer Confidence index resulted at 3.9%, an improvement from the previous 0.3%, while Home Loans were up 1.1% in May, against the expected -1.9%. Looking ahead today and Australian Consumer Inflation Expectations for July will be released at 11.00am, previously at 4.2%.
From a technical perspective, the AUD/USD pair is currently trading at 0.7362. We continue to expect to hold on moves approaching 0.7340 while now any upward push will likely meet resistance around 0.7400.