Good news from China helps lift AUD/USD
It seems that the Chinese government is willing to help with additional measures.
Share this:
China is said to be considering a partial easing to the ban on imports of Australian coal, beginning April 1st. The ban was first put in place when Australia, along with other countries, called for an investigation into how the Covid virus started. In addition, China is also setting up measures to help its ailing property market by creating a fund for “too big to fail” developers. Also, Chinese authorities are downplaying the effects of Covid after the abrupt reopening and the impact it may have on the economy. (However, some counties, such as Australia, will require a negative test for inbound Chinese travelers beginning January 5th.) All the positive news from China is helping the Aussie catch a bid on hopes of an upcoming economic expansion in China, which in-turn will help AUD/USD.
On a relatively calm day in the fx markets, as traders wait for the FOMC minutes, AUD/USD is in a range of nearly 170 pips, with an intra-day high of 0.6886. The pair had been moving in a downward sloping channel from April 5th, 2022, when it made a high of 0.7661 until October 13th, 2022, when it made a low of 0.6170. Since then, AUD/USD moved higher and broke above the top trendline of the channel in mid-November. The pair then proceeded to retrace 50% of the move from the high of 2022 to the low of 2022, closing the year near the 50% retracement level at 0.6815.
Source: Tradingview, Stone X
On a 240-minute timeframe, after breaking out of the long-term downward sloping channel (green), AUD/USD continues to grind higher in a new channel as it approaches the 50% retracement for 2022. That level offers first resistance at 0.6915, followed by the top trendline of the new channel at 0.6968. If price continues to move higher above there, the next level of resistance isn’t until the 61.8% Fibonacci retracement at 0.7092. However, if AUD/USD remains in the channel and the resistance holds, first support is at the January 3rd lows of 0.6688. Below there, price can move to the bottom trendline of the new channel near 0.6652 and then the lows of November 22nd at 0.6585.
Source: Tradingview, Stone X
Will the good news from China continue or will Covid continue to ravage the country for longer than expected. Regardless, it seems that the government is willing to help with additional measures. As long as this continues, it should be good news for Australia and AUD/USD.
China is said to be considering a partial easing to the ban on imports of Australian coal, beginning April 1st. The ban was first put in place when Australia, along with other countries, called for an investigation into how the Covid virus started. In addition, China is also setting up measures to help its ailing property market by creating a fund for “too big to fail” developers. Also, Chinese authorities are downplaying the effects of Covid after the abrupt reopening and the impact it may have on the economy. (However, some counties, such as Australia, will require a negative test for inbound Chinese travelers beginning January 5th.) All the positive news from China is helping the Aussie catch a bid on hopes of an upcoming economic expansion in China, which in-turn will help AUD/USD.
On a relatively calm day in the fx markets, as traders wait for the FOMC minutes, AUD/USD is in a range of nearly 170 pips, with an intra-day high of 0.6886. The pair had been moving in a downward sloping channel from April 5th, 2022, when it made a high of 0.7661 until October 13th, 2022, when it made a low of 0.6170. Since then, AUD/USD moved higher and broke above the top trendline of the channel in mid-November. The pair then proceeded to retrace 50% of the move from the high of 2022 to the low of 2022, closing the year near the 50% retracement level at 0.6815.
Source: Tradingview, Stone X
Trade AUD/USD now: Login or Open a new account!
• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
On a 240-minute timeframe, after breaking out of the long-term downward sloping channel (green), AUD/USD continues to grind higher in a new channel as it approaches the 50% retracement for 2022. That level offers first resistance at 0.6915, followed by the top trendline of the new channel at 0.6968. If price continues to move higher above there, the next level of resistance isn’t until the 61.8% Fibonacci retracement at 0.7092. However, if AUD/USD remains in the channel and the resistance holds, first support is at the January 3rd lows of 0.6688. Below there, price can move to the bottom trendline of the new channel near 0.6652 and then the lows of November 22nd at 0.6585.
Source: Tradingview, Stone X
Will the good news from China continue or will Covid continue to ravage the country for longer than expected. Regardless, it seems that the government is willing to help with additional measures. As long as this continues, it should be good news for Australia and AUD/USD.
Learn more about forex trading opportunities.
Related tags:
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD forecast: Eurozone stagflation risks mount as dollar holds firm ahead of data
The dollar was bouncing back at the time of writing, after it had eased overnight on the back of some weaker-than-expected economic data yesterday which had prompted markets to scale back expectations of an October Fed rate hike. However, with more significant US data due today and Friday, and with oil prices continuing to remain elevated, the dollar’s broader direction remains bullish.
NZD/USD pressure mounts as payrolls looms large
NZD/USD has fallen sharply as Fed rate expectations reset higher, but extreme downside stretch and major support raise the risk of a violent counter-trend rebound.
US Core PCE Preview: Stale or Significant for the Fed
Core PCE inflation takes center stage Wednesday, with traders watching for signs of renewed price pressure and clues on whether the Fed could hike again in October.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.