AUD/USD plummets over 100-pips after China moves to ban Australian coal imports
| • Upbeat Aussie jobs data-led uptick turns out to be short-lived.
• China moves to ban Australian coal imports at its Dalian port.
• The news prompts some aggressive selling around the Aussie.
The AUD/USD pair faded an early Asian session bullish spiked to over two-week tops, levels just above the 0.7200 handle, and tumbled to fresh weekly lows in the last hour.
The pair initially got a minor boost from a stronger than expected Aussie jobs report but then came under some intense selling pressure after China moved to ban Australian coal imports at its Dalian port. The pair plunged around 120-pips in reaction to the news, taking along some short-term trading stops near the 0.7140-30 region and the 0.7100 round figure mark.
The latest development clearly revealed deteriorating diplomatic relations between the two countries and was seen as one of the key factors exerting some heavy downward pressure on the China-proxy Australian Dollar, with a subdued US Dollar price action doing little to lend any support or stall the sharp intraday slump.
Given that the pair hasn't been able to attract any buying interest clearly indicates that the bearish pressure might still be far from over and hence, a follow-through weakness, possibly towards challenging the key 0.70 psychological mark, now looks a distinct possibility.
Moving ahead, today's US economic docket, highlighting the release of durable goods orders data, might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North-American session.
Technical levels to watch
AUD/USD
Overview:
Today Last Price: 0.7097
Today Daily change %: -0.92%
Today Daily Open: 0.7163
Trends:
Daily SMA20: 0.7154
Daily SMA50: 0.7135
Daily SMA100: 0.7161
Daily SMA200: 0.7267
Levels:
Previous Daily High: 0.7183
Previous Daily Low: 0.7141
Previous Weekly High: 0.7149
Previous Weekly Low: 0.7053
Previous Monthly High: 0.7296
Previous Monthly Low: 0.6684
Daily Fibonacci 38.2%: 0.7157
Daily Fibonacci 61.8%: 0.7167
Daily Pivot Point S1: 0.7142
Daily Pivot Point S2: 0.712
Daily Pivot Point S3: 0.71
Daily Pivot Point R1: 0.7184
Daily Pivot Point R2: 0.7204
Daily Pivot Point R3: 0.7226
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.