AUD/USD headed to 0.6750 amid poor Chinese data, risk-aversion
|- Aussie wilts on risk-off, a big miss on Chinese activity numbers, global growth woes.
- Downside looks more compelling amid a quiet US docket, ahead of Australian jobs.
The risk-off sentiment remains the main underlying theme in Wednesday’s European trading, denting the appetite for the higher-yielding assets such as the Australian dollar. Therefore, the AUD/USD pair prints fresh daily lows near 0.6760 region, having failed to sustain above the 0.68 handle in the Asian trades.
Poor Chinese data flow overshadows US-China trade optimism
The Aussie came under fresh selling pressure after a renewed risk-aversion wave gripped Europe, with S&P 500 futures dropping -0.50% and Treasury yields nearly 1.5% across the curve.
The European markets were spooked by growing German recession fears while a big miss on the Chinese Retail Sales, Industrial Production and Fixed Asset Investment data reinforced Chinese slowdown fears, collaborating to the downside in the Chinese proxy, the AUD.
Moreover, Hong Kong protests combined with falling commodities’ prices further undermine the sentiment around the spot. Also, the overnight optimism fuelled after the US delayed the tariffs on some Chinese goods until December faded, as markets remain wary ahead of the US-China trade talks scheduled next month.
Meanwhile, upbeat Australian Wage Price Index was shrugged-off by the markets, as all eyes now remain on Thursday’s key Australian jobs data amid a data-dry US docket today. The Australian jobs data will offer fresh hints on the Reserve Bank of Australia’s (RBA) interest rates outlook.
AUD/USD Technical levels
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