AUD/USD: minor recovery failing before 1hr 100 SMA

By FXStreet FXStreet (Guatemala) – AUD/USD found a small bounce in a strong downtrend that bottomed at 0.6947. However, in the CFTC report, it showed that net AUD shorts dropped a little further last week, despite Chinese growth and currency risks that have been weighing on cash Aussie.

The spot today is looking into the 100 SMA on the hourly chart at 0.7042 with a high of 0.7035 so far, but is looking short-lived and headed back towards the 20 sma on the same time frame at 0.6980 currently with spot a few pips above at time of writing. Oil in general is pressuring and printing new lows, stocks are a wobble and attempts in the S&P meets shorts at 1937 and now testing the 20 SMA on the 1hr at 1920 support.

But fundamentals, in the main, stay with China that had a bit of a better start yesterday although still was down over 2% in the first 30 min of trade. The yuan was a healthier and more neutral fix and offered the Aussie some respite.

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Source:: FX Street