AUD/USD keeps falling, eyes Thursday’s low

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The offered tone on the AUD keeps growing bigger during the late-Asian trades, knocking-off AUD/USD to fresh daily lows, as risk-off moods worsened over the last hours.

    AUD/USD heading towards 0.6907 – four-month lows

    Currently, the AUD/USD pair drops -0.57% at 0.6945, hovering close to fresh session lows struck at 0.6938 some minutes ago. The risk-sentiment soured further after the sell-off in the Chinese stock markets dragged rest of Asia lower in wake of sharp declines in the black gold.

    As a result, investors preferred to protect their capital and pulled out flows from higher-yielding currencies such as the AUD. Moreover, the extension of the rally in USD/CNH continues to weigh on the Aussie. In recent times, the offshore yuan is seen as a proxy for the AUD.

    Meanwhile, the major will continue to track the sentiment on the stock and oil markets ahead of a series of crucial US data to be reported later today. Among other, the US retail sales, PPI and consumer sentiment will grab a lot of attention. While the main focus now remain on China’s growth numbers due next week.

    AUD/USD Levels to watch

    The pair heads higher and finds the immediate resistance at 0.6996/0.7002 (Today’s & Jan 14 High) above which gains could be extended to the next hurdle located at 0.7024/27 (Jan 12 High/ 1h 200-SMA). On the flip side, the immediate support located at 0.6907 (Jan 14 Low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6893 (Sept low).
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