News

AUD/USD extends the drop to 0.7040, China data weighs

  • Sold-off amid a drop in Chinese industrial profits and USD comeback vs. risk currencies.
  • Downside opening up towards 0.7000 levels amid pre-New Year holidays thin trading.

The AUD/USD pair is seen extending its Asian decline in the early European dealing, as the sellers remain in control amid a sell-off in the risk assets following disappointing Chinese macro news.

China’s industrial profits for December fell for the first time in three years, arriving at -1.8% y/y versus 3.6% previous. On the release, the Aussie changed course and fell about 20-pips from a high of 0.7077.

The selling intensified last hour and the bears now threaten the two-month lows of 0.7030 reached last week, as the US dollar attempts a minor recovery versus the commodity-currencies, the AUD; CAD and the Kiwi, with risk appetite waning amid a sell-off in oil prices, US equity futures and Treasury yields.

Markets believe the downside moves in the Aussie could be exaggerated by thin volumes while no major fundamental catalyst could also leave the spot largely tracking the USD price-action.

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.7044
    Today Daily change: -27 pips
    Today Daily change %: -0.382%
    Today Daily Open: 0.7071
Trends:
    Previous Daily SMA20: 0.7191
    Previous Daily SMA50: 0.7191
    Previous Daily SMA100: 0.7202
    Previous Daily SMA200: 0.7367
Levels:
    Previous Daily High: 0.7072
    Previous Daily Low: 0.7032
    Previous Weekly High: 0.7204
    Previous Weekly Low: 0.7038
    Previous Monthly High: 0.7345
    Previous Monthly Low: 0.7072
    Previous Daily Fibonacci 38.2%: 0.7057
    Previous Daily Fibonacci 61.8%: 0.7047
    Previous Daily Pivot Point S1: 0.7044
    Previous Daily Pivot Point S2: 0.7018
    Previous Daily Pivot Point S3: 0.7004
    Previous Daily Pivot Point R1: 0.7084
    Previous Daily Pivot Point R2: 0.7098
    Previous Daily Pivot Point R3: 0.7124

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