FXStreet (Guatemala) – AUD/USD has been capped by the 100 SMA at 0.7008 on the hourly chart on the recovery attempts from the lows set overnight in London’s open at 0.6940. However, there has been a better risk mood on the back of PBoC intervening in the offshore market overnight.
AUD/USD consolidating
AUD/USD has been consolidating the post China stock markets crash and the Gregorian New Year 2016 open’s lows. While the dust has started to settle, some observers are starting to suggest that China will not face a “cataclysmic” economic slowdown and the market turmoil was more about badly designed stock market circuit breakers.
That said, there is plenty of anecdotal evidence that China is indeed struggling to rebound and data will continue to be key. We have been absent of anything concrete on the calendar for the Aussie so far this week, either domestic or from China, but today holds the Chinese trade balance and tomorrow comes with the Aussie jobs numbers, both of which are market movers.
AUD/USD levels
Technically, however, late September lows remain compelling at 0.6940 while the low already tested here at 0.6939. A further retest will look to head towards the 0.6907 lows. The 2004 lows at 0.6742 then come into the picture. The 100 1hr sma at 0.7008 and 0.7020 are first resistances ahead of 0.7080. 0.7120 thereafter and 0.7156 are next stops.
(Market News Provided by FXstreet)