FXStreet (Guatemala) – AUD/USD is consolidated as the price comes within a stop run of the September and August lows and recoveries can’t catch a bid through 0.7000.
Despite yet another recovery attempt, the downside is favoured as markets still can’t get to grips with what might just be the new norm. China is not going away and nor are the contractions in the economy, while the government try to prop up the markets artificially with their injections of liquidity, the circuit breakers controls, currency intervention and monetary easing policy.
Even with strong data from Australia and/or China, the Aussie can’t get free of the bears grip. The jobs data yesterday was yet another, albeit dubious, fantastic result and is going on to show the resilience the economy has in the face of the doom and gloom in the commodities sector and in the economy of their largest trading partner. If you can’t rally on good news in this environment, then that is telling.
AUD/USD levels
Technically, the aforementioned lows are in range. Valeria Bednarik, chief analyst at FXStreet explained, “In the 4 hours chart, the price stalled around a horizontal 20 SMA, while the technical indicators have lost their upward strength after reaching their mid-lines, in line with the dominant bearish trend.”
(Market News Provided by FXstreet)