AUD/USD dumped on awful China trade, 0.7400 eyed?

By FXStreet The selling pressure behind the AUD intensified following the release of poor Chinese trade data, knocking-off AUD/USD to fresh session lows.

AUD/USD nears 5-DMA at 0.7417

Currently, the AUD/USD pair drops -0.58% to 0.7425, hovering close to fresh session lows struck at 0.7419 shortly after the data release. The Aussie extended its corrective mode further to the south after worse than expected Chinese exports and imports data raised worries over the country’s external demand and also reinforced China slowdown fears. China is Australia’s biggest trading partner.

Moreover, the Asian markets sell-off spurred risk-off moods across the board, with markets giving up higher yielding assets such as the AUD in favour of the safe-havens. While the retreat in oil and copper prices after the recent rally, also weighs down on the Aussie.

Meanwhile, markets will digest the latest China data and assess its impact on the global market sentiment, keeping AUD bulls at bay for now.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7455/61 (1h 10-SMA/daily high) above which gains could be extended to the next hurdle located at 0.7500 (psychological levels). On the flip side, the immediate support located at 0.7417 (1h 50-SMA/ 5–DMA). Selling pressure is …read more

Source:: FX Street