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. 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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends losses toward 1.1250 amid coronavirus concerns

EUR/USD is trading closer to 1.1250 as concerns about US coronavirus cases are growing. Eurozone finance ministers are meeting ahead of next week's summit.  US PPI and updated COVID-19 statistics are awaited.

EUR/USD News

GBP/USD pressured under 1.26 amid risk-off mood, Brexit uncertainty

GBP/USD is trading below 1.26, off the highs. Rising US coronavirus cases are pushing markets lower and the safe-haven dollar higher. Concerns about Brexit and the UK refusal to participate in the EU coronavirus vaccine scheme are weighing on sterling. 

GBP/USD News

Gold: Well-defined battle lines point to range play around $1800

Gold nurses losses around the $1800 following Thursday’s good two-way businesses. The risk-off theme amid COVID-19 concerns continues to bode well for the US dollar. 

Gold News

Canada Net Change in Employment June Preview: June is looking better and better

Job gains expected to more than double in June. Unemployment rate to drop to 12% from 13.7 in May. Ivey PMI was twice its forecast in June, highest since Nov 2019. USD/CAD would benefit from better June job figures.

Read more

WTI extends Thursday’s drop as virus cases rise

Oil extends overnight sell-off as virus concerns dominate the market sentiment. The resurgence of virus cases in the US has fueled lockdown fears. The US on Thursday registered 65,551 new cases, a record for a 24-hour period.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures