FXStreet (Bali) – AUD/USD is recovering a small portion some of its massive loses from recent days, with the ‘risk on’ sentiment picking up, allowing the spot rate to exchange hands just under 0.69 following an early session low of 0.6840.
The sharp decline in USD/CNH after weekend news that the PBOC is set to impose reserve ratio on offshore yuan accounts, coupled with the stable fix by the PBOC and a strong rise in copper prices, is benefiting the Australian Dollar, which is in desperate need of some sort of relief rally that may move the rate away from its current depressed levels.
As Valeria Bednarik, Chief Analyst at FXStreet, notes: “This upcoming week, China will release plenty of macroeconomic data, starting next Tuesday Retail Sales and GDP figures. Should the readings suggest that Chinese economic slowdown has deepened, the Australian dollar will probably slump.”
AUD/USD technicals
Despite the ongoing bull momentum in the lower timeframes today, Valeria thinks “the technical picture supports some additional declines, with the 1 daily chart showing that the price has moved further below its moving averages and below the daily ascendant trend line broken early this month, while the technical indicators maintain their bearish momentum near oversold territory.”
(Market News Provided by FXstreet)