AUD/USD extends south run as China data adds to Aussie disappointment


  • AUD/USD drops to a four week low after China’s data dump.
  • Industrial Production, Retail Sales and Fixed Asset Investment all joined the earlier released downbeat Aussie employment data.
  • Risk tone stays sluggish amid trade/political pessimism, Hong Kong unrest.

China’s key statistics add to the AUD/USD pair traders' disappointment during early Thursday. The quote stretches previous declines, triggered through downbeat Aussie jobs report, while taking rounds to 0.6800.

China’s October month Industrial Production (YoY) rose 4.7% versus 5.4% forecast and 5.8% prior while Retail Sales grew 7.2% against 7.9% expected and 7.8% prior on the yearly basis. Further, Fixed Asset Investment also weakened to 5.2% from 5.4% expected and prior.

October month Australian employment report disappointed Aussie traders earlier during the day as the Employment Change slumped heavily versus +15K forecast to -19K. Also exerting downside pressure were downbeat readings of Unemployment Rate, Participation Rate and Fulltime Employment data.

Trade sentiment remains under pressure as the US-China trade deal stalemate joins the latest tension surrounding Taiwan, as noted by the Global Times. Additionally, the fourth consecutive day of Hong Kong protests weighs on the market’s risk-tone.

That said, the US 10-year treasury yields seesaw around 1.90% while S&P 500 Futures cheer expectations of further monetary policy easing from global central banks, based on the recently downbeat data.

Although the Asian economic calendar turns lighter now, the second testimony from the Federal Reserve (Fed) Chairman Jerome Powell will be the key to watch during the later part of the day. The Fed Chair repeated the previous comments during his initial appearance on Wednesday.

Technical Analysis

Multiple stops since late-September portray 0.6805/0.6800 as the key support zone, a break of which could drag the pair to 0.6770. On the contrary, the pair’s pullback needs to cross 100-day Exponential Moving Average (EMA) level of 0.6855 in order to aim for 0.6900 mark.

additional important levels

Overview
Today last price 0.6807
Today Daily Change -31 pips
Today Daily Change % -0.45%
Today daily open 0.6838
 
Trends
Daily SMA20 0.6863
Daily SMA50 0.6818
Daily SMA100 0.6846
Daily SMA200 0.6942
 
Levels
Previous Daily High 0.6858
Previous Daily Low 0.682
Previous Weekly High 0.6929
Previous Weekly Low 0.6847
Previous Monthly High 0.693
Previous Monthly Low 0.667
Daily Fibonacci 38.2% 0.6834
Daily Fibonacci 61.8% 0.6843
Daily Pivot Point S1 0.6819
Daily Pivot Point S2 0.6801
Daily Pivot Point S3 0.6781
Daily Pivot Point R1 0.6857
Daily Pivot Point R2 0.6876
Daily Pivot Point R3 0.6894

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD hits new 7-month highs as Tories hold the lead

GBP/USD has hit new seven-month highs closer to 1.32 as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.

GBP/USD News

EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/UDS dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 

EUR/USD News

Forex Today: US-Sino trade tensions prevail, Boris closer to victory, EUR/USD licking its wounds

Trade talks: President Donald Trump has called on the World Bank to stop lending to China, a move that may aggravate tensions, with only six days to go until Washington is set to slap new tariffs on Beijing. Negotiations continue.

Read more

Gold: Sidelined after biggest daily decline in four weeks

Gold is lacking a clear directional bias in Asia, having registered its biggest single-day decline in four weeks on Friday. China's data may embolden President Trump to take more aggressive measures. 

Gold News

USD/JPY in search of a firm direction, stuck in a range above mid-108.00s

USD/JPY was seen oscillating in a narrow band and consolidated last week’s losses. US-China trade uncertainties continued underpinning the JPY’s safe-haven status. Investors now seemed reluctant ahead of the latest FOMC monetary policy update.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures