19 Aug 2015
AUD/USD set to test 0.7300 as China stocks rout deepens
FXStreet (Mumbai) - The Australian dollar was heavily offered against its American counterpart in the mid-Asian session, knocking-off AUD/USD to fresh weekly lows at a shouting distance of 0.7300 levels, as the ongoing China stocks crash added to the concerns of China’s economic slowdown fuelling risk-off sentiment across the board.
AUD/USD drops from 0.7340 levels
Currently, the AUD/USD pair trades -0.26% lower at 0.7324, hovering close to fresh one-week lows at 0.7314 some minutes ago. The AUD/USD pair accelerated losses this session after the Chinese equities extended sell-off with the benchmark Shanghai Composite (SSEC) tumbling another 4% after a 6% drop seen on Tuesday.
Markets are wary about the impact of the recent PBOC Yuan devaluation in light of slowdown in China’s economy. China's economy has been in slowdown mode for several years now, and is expected to grow at the weakest pace this year, which is beginning to concern investors that the flow-on impact for China's top trading partners will be severe.
Meanwhile, traders also remain cautious ahead of key US macro data releases – CPI and FOMC minutes due later today for further USD moves.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7399 (Aug 14 High) levels, above which gains could be extended to 0.7413 (Aug 13 High). On the flip side, support is seen at 0.7300 levels from here it to 0.7279 (Aug 11 Low).
AUD/USD drops from 0.7340 levels
Currently, the AUD/USD pair trades -0.26% lower at 0.7324, hovering close to fresh one-week lows at 0.7314 some minutes ago. The AUD/USD pair accelerated losses this session after the Chinese equities extended sell-off with the benchmark Shanghai Composite (SSEC) tumbling another 4% after a 6% drop seen on Tuesday.
Markets are wary about the impact of the recent PBOC Yuan devaluation in light of slowdown in China’s economy. China's economy has been in slowdown mode for several years now, and is expected to grow at the weakest pace this year, which is beginning to concern investors that the flow-on impact for China's top trading partners will be severe.
Meanwhile, traders also remain cautious ahead of key US macro data releases – CPI and FOMC minutes due later today for further USD moves.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7399 (Aug 14 High) levels, above which gains could be extended to 0.7413 (Aug 13 High). On the flip side, support is seen at 0.7300 levels from here it to 0.7279 (Aug 11 Low).