AUD/USD attacks 0.7200 as China woes resurface

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The Aussie extends its previous sell-off in the European morning, now testing 0.72 barrier on the back of renewed China slowdown fears.

    AUD/USD: Lower tops on daily sticks

    Currently, the AUD/USD pair trades 0.23% lower at 0.7209, having tested 0.72 handle last minutes. The Australian dollar continues to lose ground versus its US rival this session, as the latest Chinese macro data added to the ongoing concerns over the external demand from the world’s largest consumer. China is Australia’s top export destination.

    The National Bureau of Statistics, China, revealed earlier today, profits earned by Chinese industrial companies fell 4.6% last month, posting fifth straight monthly decline.

    Moreover, the bullion and base metals halted their previous rebound and resumed the recent downward spiral, which further added to the bearish bias in the resource-linked Aussie. While Thursday’s poor Aus Capex data continue to weigh on investors’ sentiment.

    Meanwhile, the persisting risk-off trades triggered by China slowdown fears will continue to keep the AUD/USD pair undermined amid holiday-thinned markets.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7235/40 (1h 50-SMA/ daily high), above which gains could be extended to 0.7286 (Nov 25 High) levels. On the flip side, support is seen at 0.7182 (Nov 24 High) from here it to 0.7157 (Nov 23 High).
    For more information, read our latest forex news.

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