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AUD/USD crystallized circa 0.7050 after China data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 10, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - AUD/USD is softer on the PPI and CPI data from China that were missing expectations and supporting the continued bearishness over the Chinese economy and subsequent concerns for Global Growth.

    The world's second largest economy offered -5.9% PPI for October y/y vs -5.8% expected and matched -5.9 previous. CPI y/y for the same month missed expectations of 1.5% and arrived at 1.3% vs 1.6% previous and confirms a slowing economy. AUD/USD has been relatively muted on the release while markets look ahead to the China IP data tomorrow instead and awaits the domestic data for the Aussie in this week's jobs data.

    AUD/USD levels

    Technically, AUD/USD stays with the mid point of the 0.70 handle while bears keep control below the base of the 2 month channel base at 0.7097. The downtrend is firmly in place and pressures will remain prominent below the 0.7298/0.7385 Fibo retracement and within the 2014-2015 downtrend.

    However, bears will need to break the 0.7000 support level. This area of support is guarding the September 9th low of circa 0.6940 targeting 0.6905 that guards territory to the 0.6774 2004 low.
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