FXStreet (Mumbai) – The Australian dollar trimmed gains and stalled its recovery mode against its American counterpart in mid-Asia, with AUD/USD wavering in a 30 pips range.
AUD/USD faces key resistance near 0.6980
Currently, the AUD/USD pair trades 0.26% higher at 0.6971, jumping-off a dip to 0.6549 levels over the last hours. AUD/USD’s recovery from four-month lows met fresh supply and the prices turned lower, tracking extension of the sell-off in the Chinese equities. The Chinese benchmark Shanghai Composite loses nearly 3% while the CSI 300 index sinks -2.33%.
Amid a lack of major fundamental triggers, the sentiment around the Aussie was dampened by the persisting risk-off trades witnessed in Asia, mainly due to re-emergence of China slowdown fears, which triggered another sell-off across the equities and commodities’ space. The US oil is down over 2% while the copper prices decline -1.40%.
Looking ahead, the developments surrounding China and commodities will be closely monitored before the release of labour market conditions report in the NY session.
AUD/USD Levels to watch
The pair heads higher and finds the immediate resistance at 0.7000 (round number) above which gains could be extended to the next hurdle located at 0.7069 (1h 100-SMA). On the flip side, the immediate support located at 0.6928 (Daily low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6893 (Sept 2015 Low).
(Market News Provided by FXstreet)