20 Aug 2015
AUD/USD drops to 0.7315 as China stocks extend sell-off
FXStreet (Mumbai) - The Australian dollar finally surrendered and slipped into the red zone versus its American counterpart in the European morning, knocking-off AUD/USD to fresh session lows, as Chinese stocks extended losses refuelling risk-off market profiles amid ongoing China fears.
AUD/USD failed to resist 0.7350
Currently, the AUD/USD pair trades -0.42% lower at fresh session lows of 0.7315, and appears to test 0.73 handle. The AUD/USD pair failed to sustain gains and resumed its bearish tone tracking losses seen in the Chinese equities which reignited worries over the health of the Chinese economy.
The Chinese benchmark, the Shanghai Composite index fell further into losses and now trades -1.70% at 3755. However, the pair manages to cling to 0.73 barrier as stronger gold prices continue to lend support to the resource-linked Aussie.
Meanwhile, AUD/USD will be influenced by a slew of US economic data, including the weekly jobless claims, existing home sales and Philly Fed manufacturing index, to be released later in the US session.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7399 (Aug 14 High) levels, above which gains could be extended to 0.7413 (Aug 13 High). On the flip side, support is seen at 0.7300 levels from here it to 0.7279 (Aug 11 Low).
AUD/USD failed to resist 0.7350
Currently, the AUD/USD pair trades -0.42% lower at fresh session lows of 0.7315, and appears to test 0.73 handle. The AUD/USD pair failed to sustain gains and resumed its bearish tone tracking losses seen in the Chinese equities which reignited worries over the health of the Chinese economy.
The Chinese benchmark, the Shanghai Composite index fell further into losses and now trades -1.70% at 3755. However, the pair manages to cling to 0.73 barrier as stronger gold prices continue to lend support to the resource-linked Aussie.
Meanwhile, AUD/USD will be influenced by a slew of US economic data, including the weekly jobless claims, existing home sales and Philly Fed manufacturing index, to be released later in the US session.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7399 (Aug 14 High) levels, above which gains could be extended to 0.7413 (Aug 13 High). On the flip side, support is seen at 0.7300 levels from here it to 0.7279 (Aug 11 Low).