- AUD/USD opens Tuesday 0.6990, slipped to hit session lows at 0.6945 and has since pared some losses to currently trade at 0.6955
- More disappointing data from China and falling commodity prices sent investors scurrying away from risk
- Worries about the health of the Chinese economy grew after industrial firms suffered their biggest profit drop in four years
- Poor Chinese data fuelled a selloff in global equities and iron ore, Australia’s top export earner, setting the tone for the commodity currencies
- Bears firmly in charge, daily moving averages pointing south, further losses likely
- China will release the Caixn Manufacturing PMI’s along with NBS Manufacturing data later this week, which markets will closely follow for further cues
- Another major event for the week will be the Nonfarm Payrolls in light of the forthcoming FOMC meeting in October
- Immediate support for the pair seen at 0.6940, breaks below could expose 0.6907 (Sept lows), while resistance might be located at 0.7054 (20 DMA)
The material has been provided by InstaForex Company – www.instaforex.com