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AUD/USD hit 7-year low

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The risk aversion took a tool on Aussie, pushing the AUD/USD to its lowest since April 2009 in the European session.

    Proxy for China hammered

    Aussie, which is widely considered as a proxy for China, fell sharply following a 3.5% drop in the Shanghai Composite pushed European equities lower. The drop in the oil prices below $30/barrel also weighed over the Aussie. Falling oil prices push cost of production of base metals lower and thus also weigh over the AUD.

    A bout of profit taking cannot be ruled out if the European stocks manage to take back losses. Later in the day, the US December advance retail sales data may affect March rate hike bets and influence the demand for the US dollars.

    AUD/USD Technical Levels

    The pair currently trades around 0.6885. The immediate support is seen at 0.6800 (support of trend line drawn from Jan 2014 low-March 2015 low). A break below the same would expose 0.6547 (Nov 2008 close). On the higher side, a break above 0.6965 (hourly 50-MA) could see the pair test 0.7018 (hourly 200-MA).
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