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
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 as USD rebounds
EUR/USD lost its traction and retreated slightly below 1.0700 in the American session, erasing its daily gains in the process. Following a bearish opening, the US Dollar holds its ground and limits the pair's upside ahead of the Fed policy meeting later this week.
USD/JPY recovers toward 157.00 following suspected intervention
USD/JPY recovers ground and trades above 156.50 after sliding to 154.50 on what seemed like a Japanese FX intervention. Later this week, the Federal Reserve's policy decisions and US employment data could trigger the next big action.
Gold holds steady above $2,330 to start the week
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin (BTC), which showed strength last week, has slipped into a short-term consolidation.
Five Fundamentals for the week: Fed fears, Nonfarm Payrolls, Middle East promise an explosive week Premium
Higher inflation is set to push Fed Chair Powell and his colleagues to a hawkish decision. Nonfarm Payrolls are set to rock markets, but the ISM Services PMI released immediately afterward could steal the show.