AUD/USD and Copper erased PBOC led gains

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The Aussie quickly erased PBOC led gains, taking the AUD/USD pair back below 0.7250 as copper prices fell back to square one.

    Drops below hourly 100-MA

    The spot now trades well below its hourly 100-MA located at 0.7244 levels. Immediately after PBOC announced a rate cut, the Comex Copper prices edged higher and pulled up the AUD/USD along with it. However, Copper and other metals quickly erased gains.

    The pair now trades around 0.7230 levels. The USD is up across the board as markets fear Draghi’s dovish stance has triggered a fresh round of easing in Asia and Europe.

    AUD/USD Technical Levels

    The immediate support is seen at 0.7226 (hourly 50-MA), under which the losses could be extended to 0.72 handle. On the higher side, resistance is located at 0.73 and 0.7328 (100-DMA), above which gains could be extended to 0.7382 (Oct 12 high).
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