AUD/USD meets fresh supply on poor China data, 0.76 eyed

The AUD/USD pair came under fresh selling pressure following the release of below expectations Chinese industrial profits data, with the rate now inching closer towards 0.76 handle.

AUD/USD breaches Wednesday’s low

Currently, the AUD/USD pair now trades -0.25% lower near fresh session lows of 0.7628, extending the downside towards 0.76 barrier. The Aussie faces double whammy from poor Australian import prices data on one hand, while a sharp drop in the Chinese industrial profits also weighed on the AUD on the other hand. China is Australia’s biggest trading partner.

Moreover, the AUD/USD pair also remains depressed amid risk-off trades, with the recent decline in oil prices, hurting the resource-linked AUD. Additionally, resurgence of broad based US dollar strength also collaborated to a fresh bout of selling in the major, after having witnessed a brief phase of downside consolidation pre-Tokyo open.

Focus now remains on the upcoming US economic news for fresh direction on the Aussie, especially after increased calls for a rate hike by year-end.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7650 (psychological levels) above which gains could be extended to the next hurdle located 0.7709 (4-day highs) and 0.7739 (3-week highs). On the flip side, the immediate support located 0.7600 (round figure). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7584 (daily S2) and below that at 0.7527 (200-DMA).