AUD/USD erases gains, risk aversion hurts

By FXStreet FXStreet (Mumbai) – The drop in the Chinese equities and the resulting risk aversion the markets once again weighed over the AUD/USD pair. The Aussie fell back to trade around its opening price at 0.7112.

Rejected at 0.7153

The spot traded at a high of 0.7153 levels earlier today after the RBA held interest rate unchanged. However, the drop in the Chinese equities once again dragged the Aussie lower. Fresh signs of weakness in the commodity prices due to the decline in the crude oil are also weighing over the Aussie.

The traders are likely to keep an eye on the sentiment in the major European equity markets. The US ISM manufacturing figures later today could also influence the pair.

AUD/USD Technical Levels

The spot currently trades around 0.7112. The immediate support is seen at 0.71, under which the spot could target 0.7069 (Aug 26 low). On the other hand, resistance is seen at 0.7153 (daily high) and 0.7205 (Aug 28 high).
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Source:: FX Street