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AUD/USD: Sellers attempt to re-take 72 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Bali) - /www.fxstreet.com/analysis/technical-analysis-forex/">AUD/USD has come off highs above 72 handle, highest at 7215, with the selling in the Shanghai Composite post lunch break to blame for the renewed heavy tone at present.

    China pivotal for the Aussie

    The Australian Dollar was initially boosted during the Shanghai open, following aggressive buying on news that the PBOC had decided to inject 130 bn yuan in liquidity, the highest daily sum seen since Dec 8th.

    The move by the Chinese Central Bank came after a decline of 7% in the CSI 300 on Monday - largest 300 stocks in the Shanghai and Shenzhen exchanges -, which triggered newly-introduced circuit breakers. Today, and after an open below 2.5%, the CSI recovered by as much as 0.75% before the current correction lower in afternoon trading.

    AUD/USD technicals

    Technically speaking, Valeria Bednarik, Chief Analyst at FXStreet, noted: "In the 4 hours chart, the latest bounce has helped the technical indicators stalled their declines, but as they remain near oversold readings, the downward risk prevails, with a break below 0.7160 required to confirm a new leg south."
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