AUD/USD dropped on weak iron prices

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The offered tone on the AUD continues to gather pace in the US session, pushing the AUD/USD lower on account of weak metal and energy prices.

    Iron ore hit 6-year low, oil nearing 2015 low

    The pair hit a fresh session low of 0.7271 levels as US traders react to Iron prices hitting 6-year lows earlier today. Crude prices have a bearish impact on the majors and more so on the Aussie, since lower energy prices also pulls down the cost of production of metals.

    Given the empty economic calendar in the US, the pair could continue its down trend and may see some respite only if the oil prices halt the decline.

    AUD/USD Technical Levels

    At 0.7280, the pair could find immediate support at 10-DMA at 0.7272, under which the pair could target 0.7250 (Nov 30 low), which, if taken out would expose 0.7204 (23.6% of 0.8163-0.6907). On the other side, resistance is seen at 0.73 and 0.7325 (hourly 50-MA).
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