AUD/USD jitters around China open

FXStreet (Guatemala) - AUD/USD's recovery in early Asia is meeting supply on the back of the Yuan fix and Chinese markets opening under pressure.

AUD/USD has been making a steady comeback after a bearish open when risk-off markets took the pair down from current levels to score a low of 0.6926. The Yen took the show to lose the 117 handle and score the lowest levels since the 2015 August low and diverging even further from that cluster of magnetic MA's on the 120 and 121 handles.

The Aussie is now trading at the lowest levels since Sep 2015 when it made a low of 0.7021. China will continue to weigh on commodity prices and the Australian economy's outlook and could force the hand of the RBA sooner than later, pressuring the aussie to the downside.

AUD/USD levels

Technically, late September lows remain compelling at 0.6940 before 0.6907 the low. 0.7000 and then 0.7080 are first key resistances while bulls may struggle at 0.7090. 0.7120 thereafter and 0.7156 are next stops.

China's A50 futures down 0.4%

Ahead of the Shanghai cash open, the Chinese A50 FTSE futures index is trading down by 0.4% following another stable fix by the PBOC (second consecutive one after last Friday's call).
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China stocks: Shanghai falls below 2% at the open

After opening down by over 2% at the open, the Shanghai Composite has extended its losses moderately in the first 5 minutes of trading, although no much follow through has been seen for now. The CSI300 index opened down 1.7%, while in Hong Kong, the HangSeng falls by more than 2% as well, losing the psychological 20k mark for the first time since June 2013.
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