FxWirePro: AUD/ USD slips five-year low with plenty more downside potential

• The AUD/USD plummeted to   five-year low on Monday as drop was driven by concerns over a potential global trade war triggered by new US tariffs.

• Trump followed through on his threats over the weekend, imposing 25% tariffs on Canada and Mexico, and a 10% levy on China.

•While Australia was not directly affected by Trump’s tariffs, its economy is  highly dependent on trade, particularly with China, their key export market.

•On the data front, Australian Bureau of Statistics (ABS) on Monday showed retail sales fell 0.1% in December from November, when they had risen by 0.7%.

•  At GMT 06:58, The Australian dollar  was last  trading down 1.10% to $0.6136. 

•  Immediate resistance is located at 0.6175(38.2%fib), any close above will push the pair towards 0.6283 (50%fib).

•  Support is seen at 0.6094 (23.6%fib) and break below could take the pair towards 0.6000 (Psychological level)

Recommendation: Good to sell  around 0.6170, with stop loss of 0.6260, and target price of 0.6070