The AUDUSD fell sharply today amid renewed concerns over deteriorating U.S.–China relations. China, which controls the global supply of many rare earth minerals critical for defense and technology production, appears to be leveraging that position as a bargaining chip in the escalating trade standoff. The market mood turned risk-off early in the session as traders questioned whether tensions might intensify — or when they might be resolved — sending both stocks and the AUDUSD lower.
As the U.S. equity indices rebounded from session lows, AUDUSD also staged a recovery, climbing back toward a key swing area near 0.6481. That level now serves as a short-term barometer for buyers and sellers. A sustained move above it would open the door for a test of 0.6500–0.65046, followed by the 100-day moving average, which capped yesterday’s high and remains a crucial upside barrier.
On the downside, if sellers lean against current resistance and trade tensions flare again, support comes in near 0.6449–0.6454, with the session low around 0.6440 and the 200-day moving average at 0.64223 as the next downside targets.
For now, the pair sits at a technical crossroads — caught between geopolitical headlines and chart resistance, with traders weighing whether today’s rebound is the start of a recovery or merely a pause before another push lower.
