AUD/USD: more downside to come today?
By FXStreet FXStreet (Guatemala) – AUD/USD AUD/USD has yet again made lower lows on the 0.71 handle after a dismal performance to start the year off in the face of Chinese crisis in 2016.
Net AUD shorts dropped in the final reading of the year but the yield where investors parked their cash over the holidays was not enough in the onslaught of risk aversion as soon as poor data from China hit the wires and Chinese stocks fell around 7.5% in general.
Risk appetite was yet again poor overnight and now the focus will turn to Chinese stocks again in this session (Composite closed higher yesterday), Chinese services PMI as well as commodities in general until the US jobs data at the end of the week.
AUD/USD levels
Technically, Valeria Bednarik, chief analyst at FXStreet explained that the short term picture is bearish as in the 1 hour chart.
“The price is below a strongly bearish 20 SMA, while the technical indicators are consolidating near oversold territory. In the 4 hours chart, the technical indicators are posting tepid bounces from oversold readings, but are far from suggesting a change in the bearish dominant trend.”
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Source:: FX Street
