AUD/USD corrective mode intact on China trade, US elections eyed
The AUD/USD pair keeps its corrective-mode intact from yesterday’s risk-on rally, following the release of sluggish Chinese trade balance data, with all eyes centered on today’s US elections.
AUD/USD below 0.7700
Currently, the AUD/USD pair drops -0.50% to fresh session lows of 0.7690, having failed to hold near 3-week tops reached at 0.7730 a day before. The Aussie extends its corrective slide and gives up 0.77 handle, as below estimates Chinese trade data dampened the sentiment around the AUD. China is Australia’s biggest export destination.
The China Customs showed that October (CNY terms) exports (YoY) slumped -3.2% versus est. -0.8%, prev. -5.6%, while imports (YoY) stood at 3.2% versus est. 5.0%, prev. 2.2%.
Moreover, a bout of profit-taking in the AUD/USD pair cannot be ruled out after the recent strength, as markets look to clear out positions ahead of the key risk event for the fx space today, the US presidential elections.
On Monday, the major rallied to the highest levels in three-weeks above 0.77 handle after risk-appetite returned to markets on increased odds of a Clinton win and FBI clearances of Clinton’s emails.
The pair finds the immediate resistance at 0.7730 (3-week highs) above which gains could be extended to the next hurdle located 0.7750 (psychological levels) and 0.7783 (daily R2). On the flip side, the immediate support located 0.7658/47 (10 & 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7609/01 (Nov 2 low/ 100-DMA) and below that at 0.7539 (200-DMA).
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Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
