Thursday, September 24, 2015

AUD/USD: Bulls exhausted near 0.7025, flirting with 0.70

FXStreet (Mumbai) - The AUD/USD pair failed to extend beyond 0.7020-25 region and reverted to two-week lows levels below 0.70 handle in mid-Asia, as falling major Asian indices spooked markets, paving way for risk-off sentiment across the financial markets.

AUD/USD back below 0.70

Currently, the AUD/USD pair trades -0.11% lower at 0.6995, heading towards fresh two-week lows reached at 0.6984 on Wednesday. The Aussie wiped-out gains and resumed its ongoing downward spiral, despite higher commodity prices, as risk-aversion seeps back into the market amid increasing uncertainties over global economic outlook, with China slowdown fears – the main concern.

On Wednesday, the Aussie fell to its weakest level in more than two weeks at 0.6984, with broad losses hitting 'commodity' currencies, following a weaker-than-expected manufacturing PMI reports across the globe.

Meanwhile, markets turn their focus towards the upcoming data releases due later in the US session as the Asian calendar remains data-dry, with nothing relevant on the cards.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7042 (Sept 8 High) levels, above which gains could be extended to 0.7096 (Sept 23 High) levels. On the flip side, support is seen at 0.6984 (Sept 23 Low) levels from here it to 0.6943 (Sept 10 Low).
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