AUD/USD: Bears retain control on poor China trade

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The Aussie keeps range below hourly 20-SMA at 0.7278 following the release of the sluggish Chinese trade figures, which once again raised worries over the country’s external demand.

    China data disappoints again

    Currently, the AUD/USD pair trades -0.11% lower at 0.7259, having faced fresh supply at 0.7270 on a minor-recovery from lows. The Aussie remains pressured and hovers within a shouting distance of the daily lows struck at 0.7249 levels, as China’s trade data once again revealed the ongoing weakness in the Chinese domestic as well as the external demand.

    China’s exports dropped 3.7% in November in yuan terms, against a 3.6% fall in October. Imports declined 5.6% in yuan terms, leaving a trade surplus of 343.1 billion yuan.

    Moreover, the recent sell-off in commodities with oil prices at multi-year lows and a broadly stronger US dollar, keeps the resource-linked Australian dollar on the back foot against its US counterpart.

    Meanwhile, markets will digest the latest China trade data and will continue to monitor the price action in the commodity space for further momentum.

    AUD/USD Levels to watch

    The pair trades below 0.73 handle with the immediate support is seen at 0.7234 (20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7200/0.7198 (round number/ 50-DMA). On the flip side, the immediate resistance seen at 0.7278 (1h 20-SMA), above which gains could be extended to the next hurdle located at 0.7307 (5-DMA).
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