AUD's brief sell-off; China's new home sales fall for another month


Best analysis

It’s been an interesting day in Asia, despite the lack of market moving economic data. The Australian dollar was hit by a wave of sellers midway through the session as AUDUSD took out some stops below 0.8750. The move lower in the commodity currency looked largely technical but it may have also been reacting to reports of another Ebola case in the US.

Later in the session, China released its property data for September which showed that new home prices fell annually for the first time in two years. Between August and September new home prices fell in 69 of the 72 surveyed cities, up from 69 in the prior month. This may raise even more alarm bells in Beijing about the state of China’s most important market.

The Chinese data was largely ignored in the FX market, mostly because the fears about China’s property market are well-established. This helped AUD regain some of its lost ground. In fact, AUDUSD managed to break back above 0.8750 and is currently hovering around the level it began today’s session at. It is finding some resistance around 0.8756/70, but a break here could see the pair make a run for 0.8810. On the downside, there is a new support zone around 0.8720 and a well-established support level around 0.8650.

Source: FOREX.com

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