FXStreet (Mumbai) – The offered tone on the AUD keeps growing bigger during the late-Asian trades, knocking-off AUD/USD to fresh daily lows, as risk-off moods worsened over the last hours.
AUD/USD heading towards 0.6907 – four-month lows
Currently, the AUD/USD pair drops -0.57% at 0.6945, hovering close to fresh session lows struck at 0.6938 some minutes ago. The risk-sentiment soured further after the sell-off in the Chinese stock markets dragged rest of Asia lower in wake of sharp declines in the black gold.
As a result, investors preferred to protect their capital and pulled out flows from higher-yielding currencies such as the AUD. Moreover, the extension of the rally in USD/CNH continues to weigh on the Aussie. In recent times, the offshore yuan is seen as a proxy for the AUD.
Meanwhile, the major will continue to track the sentiment on the stock and oil markets ahead of a series of crucial US data to be reported later today. Among other, the US retail sales, PPI and consumer sentiment will grab a lot of attention. While the main focus now remain on China’s growth numbers due next week.
AUD/USD Levels to watch
The pair heads higher and finds the immediate resistance at 0.6996/0.7002 (Today’s & Jan 14 High) above which gains could be extended to the next hurdle located at 0.7024/27 (Jan 12 High/ 1h 200-SMA). On the flip side, the immediate support located at 0.6907 (Jan 14 Low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6893 (Sept low).
(Market News Provided by FXstreet)