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AUD/USD: Bulls offered support on commodities rebound

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The Australian dollar edged higher versus its American counterpart in the Asian, with AUD/USD posing a minor recovery from fresh five-week lows posted last Friday.

    AUD/USD aims for 20-DMA

    Currently, the AUD/USD pair trades 0.18% higher at 0.7057, hovering close to fresh session highs reached at 0.7061 last minutes. The Aussie halted a 3-day downslide and ticked higher this session mainly driven by a minor recovery seen in gold and oil prices.

    However, the correction is expected to remain short-lived as the prices are expected to come under renewed selling pressure as weak Chinese trade data released on Sunday continue to weigh on investors’ mind.

    The Chinese imports slumped 18.8% versus a 15.2% decline expected while exports fell 6.9% over the same period, more than double the pace expected. China is Australia’s biggest trading partner.

    Moreover, the US dollar is expected to resume its upbeat momentum as the USD bulls continue to ride higher on the solid US NFP data released on Friday, thus keeping the upside AID/USD restricted.
    Looking ahead, markets will continue to digest the recent economic news from the US and China, while awaiting a host of Chinese data due for release later this week.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7071 (20-DMA), above which gains could be extended to 0.7113 (Oct 5 High) levels. On the flip side, support is seen at 0.7018 (Nov 6 Low) from here it to 0.7000/0.6994 (Oct 2 & 1 Lows).
    For more information, read our latest forex news.

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