Breaking: AUD/USD falls after China says to end 'strategic economic dialogue' with Australia

FXStreet Team FXStreet

China has decided to "indefinitely suspend" all activities under the China-Australia Strategic Economic Dialogue, the country’s state planner, the National Development and Reform Commission, said in a statement explaining the decision on Thursday.

The NDRC said: "Recently, some Australian Commonwealth Government officials launched a series of measures to disrupt the normal exchanges and cooperation between China and Australia out of Cold War mindset and ideological discrimination.”

“Sino-Australia trade relations have deteriorated in recent months with China restricting or banning imports of Aussie goods including lobsters, wines, beef and coal,” per Reuters.

China’s Foreign Ministry: Australia should avoid making already strained bilateral ties worse

AUD/USD erodes over 50-pips in a matter of minutes

AUD/USD came under fresh selling pressure on the above news, falling over 50-pips from near-daily highs of 0.7758 to hit fresh daily lows of 0.7702.

The spot was last seen trading at 0.7715, down 0.385% on the day.

AUD/USD technical analysis

AUD/USD hourly chart

The negative news triggered a rising wedge breakdown on the hourly chart, with the Relative Strength Index (RSI) turning outrightly bearish.

The price has cut through all the major hourly moving averages (HMAs), exposing the critical 0.7700 support, below which Tuesday’s low of 0.7676 could be tested.

On the flip side, recapturing the 50-HMA at 0.7730 is critical to extending the recovery in the aussie.

AUD/USD additional levels to consider

AUD/USD

Overview
Today last price	0.7717
Today Daily Change	-0.0030
Today Daily Change %	-0.39
Today daily open	0.7748

Trends
Daily SMA20	0.7724
Daily SMA50	0.7709
Daily SMA100	0.7709
Daily SMA200	0.7473

Levels
Previous Daily High	0.7755
Previous Daily Low	0.7704
Previous Weekly High	0.7819
Previous Weekly Low	0.7696
Previous Monthly High	0.7819
Previous Monthly Low	0.7531
Daily Fibonacci 38.2%	0.7735
Daily Fibonacci 61.8%	0.7723
Daily Pivot Point S1	0.7716
Daily Pivot Point S2	0.7684
Daily Pivot Point S3	0.7665
Daily Pivot Point R1	0.7768
Daily Pivot Point R2	0.7787
Daily Pivot Point R3	0.7819

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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