AUD/USD drops to 0.7170, risk-off intensifies as Asian stocks plunge

By FXStreet FXStreet (Mumbai) – The AUD/USD pair accelerated to the downside and now mires near fresh session lows, having breached the key support at 0.7180 levels.

AUD/USD hits fresh session lows

Currently, the AUD/USD pair trades -0.23% lower at 0.7172, having posted fresh session lows at 0.7165 in last hours. The Aussie witnessed fresh selling interest and fell back into the red after risk-aversion peaked on the back of falling Asian indices.

Asian stocks tumbled as Fed’s verdict continue to dampen investors’ sentiment, with the benchmark Australian S&P/ASX 200 index emerging the biggest loser, down -2.60%, while the Shanghai Composite trades -0.50% and Hang Seng loses -.1.36%. Nikkei remains closed on account of a National holiday.

The AUD/USD pair also remains pressured on the back of lower commodity prices while also tracking losses in its OZ neighbour. The Kiwi edged lower in Asia after the country’s consumer confidence hit a 3-yr low in Q3.

Looking ahead, markets look forward to the Chinese manufacturing PMI and a host of key US economic data due for release later in the week for further direction on the AUD/USD pair.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7253 (Aug 25 High) levels, above which gains …read more

Source:: FX Street