AUD/USD extends losses as Trump plans to move on with tariffs on Chinese goods

• AUD/USD down for the second day in-a-row, approaches last week lows.
• US dollar remains strong amid sell-off in EM currencies and US-China trade tensions.

The AUD/USD pair broke below 0.7275 and extended losses during the American session. Recently it printed a fresh daily low at 0.7248 after a report mentioned that US President Trump backs tariffs for USD 200B to Chinese products as early as next week. Trump’ss comments sent Wall Street and USD/JPY lower.

Previously, the pair dropped amid risk aversion. A sharp slide in emerging-market currencies boosted the demand for the greenback. The Argentine peso fell 12% and the Turkish lira 2.70%. Other currencies lost on average more than 1% prompting central bank interventions.

The pair remains under pressure with a bearish bias and closer to last week lows. On a weekly basis, it is headed toward the lowest close since December 2016.

AUD/USD Levels to watch

To the downside, immediate support is seen at 0.7235/40 (last week low), followed by 0.7215 and the 0.7200 area. To the upside, resistance levels could be located at 0.7275 (Aug 29 low), 0.7300 and 0.7315 (Aug 30 high).