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AUD/USD: Sellers in control on poor Aus jobs, China miss

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The AUD/USD pair keeps the red and stalls the recovery near 0.7170 region as markets continue to weigh the poor fundamentals surrounding the Aussie.

    AUD/USD finds good support near 0.7130

    Currently, the AUD/USD pair drops –0.33% at 0.7160, easing-off post-jobs high reached at 0.7172. The Aussie remains pressured as the latest Australian jobs report reinforced RBA easing bets and suggested that the previous strong readings were perhaps a statistical glitch. The unemployment rate climbed to 5-month highs at 6.0% last month from 5.8% in December, after employment fell by a net 7,900 in January.

    The second blow came in form of dismal China’s CPI figures to the Aussie, which missed estimates and reinforced China slowdown concerns. China's CPI rose 1.8% y/y in January, coming in slightly weaker than the 1.9% increase forecast by markets, but accelerating from 1.6% in December. However, the downside remained in check as the rebound in oil prices and rally in global equities continue to provide some respite to the AUD bulls.

    Meanwhile, markets continue to digest the comments that flowed in from the RBA and Fed official, and now await fresh incentives from the European open.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7191/0.7200 (200-DMA/ round number) above which gains could be extended to the next hurdle located at 0.7215/29 (daily R1/ Feb 5 High). On the flip side, the immediate support located at 0.7136 (50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7105 (1h 200-SMA).
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