AUD/USD eases below 0.73 amid commodities sell-off

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The AUD/USD rally lost steam just ahead of 0.73 barrier, although the Aussie emerged the best performer amongst the commodity-currencies pack.

    AUD/USD hovers around 5-DMA

    Currently, the AUD/USD pair trades 0.25% higher at 0.7285, easing-off session highs recorded at 0.7308 in the European morning. The Aussie keeps its corrective mode intact this session, having booked heavy losses on Friday, and is currently shedding partial gains ahead of the US open.

    The AUD/USD pair failed once again near 0.73 handle and fell below the last as the sell-off across the commodity space accentuated, dragging the resource-linked Aussie lower. Gold drops -0.90% while the US oil loses nearly 1%. Copper prices slide -0.85%.

    The Aussie’s correction gained steam after the Chinese GDP outpaced estimates, coming in at 6.9% q/y in Sept against 0.68% expectations. However, the poor industrial production data and fixed assets data from China weighed on investors’ sentiment and cap the upside in the pair.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7308 (Today’s High) levels, above which gains could be extended to 0.7385 (Oct 12 High) levels. On the flip side, support is seen at 0.7239 (Today’s Low) levels from here it to 0.7200 (round number).
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