- AUD/USD slipped below the 0.7000 level for a second time to hit new multi-year lows at 0.6981 on the back of poor Australia Q2 GDP data
- Australia’s GDP for Q2 missed expectations, came in at 0.2% q/q and 2% y/y compared to 0.4% and 2.2% expected respectively
- AUD/USD however quickly reversed losses to reclaim the 0.7000 barrier and is currently trading at 0.7029
- Shanghai Comp opened down 4.4 pct this morning and U.S. Nonfarm Payrolls this week is tipped to be positive, favouring USD bulls
- AUD/USD bias is lower, a breach of 0.6980 on the downside could take the pair to 0.6776 levels (June 2004 low)
- Daily charts show Stochs at oversold levels on the verge of a bullish crossover, so caution advised
- Immediate support is at day’s low by 0.6981, while resistance on the upside is seen at 0.7153 (10 DMA, Sept 1st highs)
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