Forex: AUD/USD drops 1%, eyes on China data
Forex pairs in this Article »
AUD/USD
FXstreet.com (San Francisco) - After a few days of testing ascending trend line support measured from the trough of 1 June to that of 28 June, AUDUSD finally managed to break below at the 1.0195 mark overnight Thursday to hit a fresh two-week low at 1.0100.
The pairing managed to finish the North American session with a daily loss of more than 1% at 1.0137 from 1.0250 late Wednesday. The sharp decline came amid high degrees of risk aversion on global growth worries given the weaker performance of China and the tough recovery in the U.S.
In the Asia-Pacific session this Friday, key fundamental risk event for AUD will be the release China's second quarter GDP figures, and June Industrial Production and Retail Sales data at 02:00 GMT. Consensus forecast is for a slight decrease in GDP (both YoY and MoM) from last month, and a 0.2% increase in IP from May while a 0.2% decrease in RS is predicted from last month's reading. The Australian dollar is sensitive to Chinese data given the nations' close trade ties.
At the time of writing, AUDUSD is back trading below the 100-day EMA, but, if we consider the 4-hour chart, has found interim support at the 200 EMA. If the downward action continues, a bullish retracement can first be expected, with resistance noted at 1.0168 (38.2%, 1.0280/1.0099), then at 1.0188 (50%, mentioned decline). The downside offers support at 1.0062, 1.0000 (figure) and 0.9963 (neckline).
The pairing managed to finish the North American session with a daily loss of more than 1% at 1.0137 from 1.0250 late Wednesday. The sharp decline came amid high degrees of risk aversion on global growth worries given the weaker performance of China and the tough recovery in the U.S.
In the Asia-Pacific session this Friday, key fundamental risk event for AUD will be the release China's second quarter GDP figures, and June Industrial Production and Retail Sales data at 02:00 GMT. Consensus forecast is for a slight decrease in GDP (both YoY and MoM) from last month, and a 0.2% increase in IP from May while a 0.2% decrease in RS is predicted from last month's reading. The Australian dollar is sensitive to Chinese data given the nations' close trade ties.
At the time of writing, AUDUSD is back trading below the 100-day EMA, but, if we consider the 4-hour chart, has found interim support at the 200 EMA. If the downward action continues, a bullish retracement can first be expected, with resistance noted at 1.0168 (38.2%, 1.0280/1.0099), then at 1.0188 (50%, mentioned decline). The downside offers support at 1.0062, 1.0000 (figure) and 0.9963 (neckline).
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