FXStreet (Mumbai) – The offered tone on the AUD picks-up pace in the late-Asian trades, drowning AUD/USD deeper into the red towards 50-DMA as markets digest weak China trade data.
AUD/USD drops to fresh 5-day low
Currently, the AUD/USD pair trades -0.57% lower at fresh five-day lows of 0.7225, giving away near 40-pips post-China data. The latest slump in the Chinese exports reinforced beliefs that China’s economic health is deteriorating while the decline in imports also cast doubts over the demand prospects in the world’s second largest economy. The Aussie was hit badly by the poor China trade data as the Asian nation is Australia’s biggest export destination.
In the USD terms, the Chinese exports dropped 6.8% y/y in Nov and imports slid 8.7%, leaving the trade surplus to $54.10 billion against October’s record high of $61.64 billion.
Moreover, lower commodity prices, especially oil, and negative performance on the Asian indices also dent the sentiment around the Aussie. While markets ignored upbeat NAB business confidence numbers for Nov as focus now shifts towards Wednesday’s China CPI report and Thursday’s Australian jobs data for incentives on the pair.
AUD/USD Levels to watch
The pair moves further away from 0.73 handle with the immediate support is seen at 0.7200/0.7198 (round number/ 50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7165 (100-DMA). On the flip side, the immediate resistance seen at 0.7274 (1h 200-SMA/ 10-DMA), above which gains could be extended to the next hurdle located at 0.7301/04 (5-DMA/ 1h 50-SMA).
(Market News Provided by FXstreet)