20 Aug 2015
AUD/USD: Bulls struggling near 0.7350, falling China stocks weigh
FXStreet (Mumbai) - The Australian dollar erased early gains and now trades muted versus its American counterpart in the mid-Asian session, with AUD/USD wavering around 0.7350 levels, as falling Chinese stocks added to the persisting China worries which continues to keep the Aussie undermined.
AUD/USD drops from 0.7373 levels
Currently, the AUD/USD pair trades almost unchanged at 0.7348, hovering close to fresh session lows reached at 0.7314 in the last hours. The AUD/USD pair shaved-off overnight gains backed by weaker US dollar after Fed minutes disappointed markets, providing no clue on rate hike timing while expressing concerns over low inflation.
The pair snapped the upside bias and now trades muted after Chinese stock markets opened in the red today and extends weakness fuelling concerns over slowdown in Australia’s top trading partner, China. However, rising gold prices coupled with broad based USD weakness helps the Aussie to restrict the losses.
Meanwhile, AUD/USD will be influenced by a slew of US economic data, including the weekly jobless claims, existing home sales and Philly Fed manufacturing index, to be released later in the US session.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7399 (Aug 14 High) levels, above which gains could be extended to 0.7413 (Aug 13 High). On the flip side, support is seen at 0.7300 levels from here it to 0.7279 (Aug 11 Low).
AUD/USD drops from 0.7373 levels
Currently, the AUD/USD pair trades almost unchanged at 0.7348, hovering close to fresh session lows reached at 0.7314 in the last hours. The AUD/USD pair shaved-off overnight gains backed by weaker US dollar after Fed minutes disappointed markets, providing no clue on rate hike timing while expressing concerns over low inflation.
The pair snapped the upside bias and now trades muted after Chinese stock markets opened in the red today and extends weakness fuelling concerns over slowdown in Australia’s top trading partner, China. However, rising gold prices coupled with broad based USD weakness helps the Aussie to restrict the losses.
Meanwhile, AUD/USD will be influenced by a slew of US economic data, including the weekly jobless claims, existing home sales and Philly Fed manufacturing index, to be released later in the US session.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7399 (Aug 14 High) levels, above which gains could be extended to 0.7413 (Aug 13 High). On the flip side, support is seen at 0.7300 levels from here it to 0.7279 (Aug 11 Low).