AUD/USD attacks 0.7000 on falling oil, copper

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The AUD/USD sell-off extends in the mid-European session, with the bears now heading for a test of the critical support placed at 0.7000.

    AUD/USD drops 100-pips so far

    Currently, the AUD/USD pair trades -0.98% lower at fresh three-month lows of 0.7001. The Aussie extends its relentless downslide into a sixth-day today and now attacks the critical support on the back of falling oil and copper prices amid renewed demand concerns from China, stoked by constant yuan by PBOC. China is the world’s largest commodities’ consumer as well as top export destination for the resource-rich Australia.

    Meanwhile, oil prices are hovering near fresh 12-year lows, down almost 4%, while copper prices shed 3% so far this Thursday. Later today, markets will closely watch the US jobless claims figures ahead of the highly influential payroll data due tomorrow. While the Australian retail sales data is also lined up release on Friday.

    AUD/USD Levels to watch

    The pair heads higher and finds the immediate resistance at 0.7055/62 (1h 10 & 20-SMA) above which gains could be extended to the next hurdle located at 0.7086/0.7100 (round number). On the flip side, the immediate support located at 0.7000 (psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6969 (daily S2).
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