audusd weighed down by chinaaustralia data usd strength 1748222015
<p>November 10, 2015 – AUD/USD continued to be weighed down on Tuesday well after somewhat disappointing data releases from both China and Australia, as well […]</p>
Share this:
November 10, 2015 – AUD/USD continued to be weighed down on Tuesday well after somewhat disappointing data releases from both China and Australia, as well as persistent US dollar strength. The currency pair traded in a tight range on Tuesday just above major 0.7000 psychological support.
National Australia Bank released its monthly business survey results for October showing a relatively low reading of 2. Although this number still indicates improving conditions, it is a significant drop from September’s reading of 5 and much lower than the long-term average.
Perhaps of greater importance than this data, however, was China’s release of its Consumer Price Index (CPI), which is the most important indicator of inflation in China. The CPI came out at 1.3% against prior expectations of 1.5%. This data renewed fears of potential deflation in China, which weighed on both the Chinese yuan and Australian dollar.
Adding to the rather grim prospects for AUD/USD have been heavily-pressured gold prices along with a persistently strong US dollar that has been benefiting from recently renewed expectations of a December Fed rate hike.
Combined with AUD/USD’s fundamental picture, the technicals also point to a bearish outlook. The long-term and short-term trends are both rather clearly to the downside, as the currency pair has been falling consistently for well more than a year. Just last week, AUD/USD tested the 0.7200 resistance level to the upside before retreating back down to its current position near the noted 0.7000 psychological support level. This level is not far above September’s six-year low around 0.6900.
This week, another key set of economic data in the form of Australia’s Employment Change and Unemployment Rate will be released on Thursday. This release could affect the prospects for another potential interest rate cut by the Reserve Bank of Australia.
With any breakdown below the noted 0.7000 support level, the next major downside target, which would confirm a continuation of the long-term downtrend, is at the 0.6800 support objective.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.