AUD/UsD: Sellers Aim For 0.7095 Support Line After Breaking 100-Day SMA
Investors turn to the greenback in search of risk aversion ahead of major global markets come into play.
Doubts over Chinese stimulus and break of 100-day SMA also weigh on Aussie.
Having breached 100-day SMA, AUD/USD drops to the lowest levels in nearly a fortnight as traders preferred the US Dollar (USD) in search of risk safety ahead of global markets appear in full form today.
Even if Japan and China were active throughout the recent holiday season, absence of other major market players dimmed the trading sentiment since Friday.
Above all, prospects of China cutting down on its monetary policy measures have been negatively affecting the antipodeans off-late.
Global barometer of risk sentiment, the US 10-year treasury yield trims more than one basis point as it seesaws around 2.579%.
Investors await Wednesday’s headline consumer price index (CPI) and Friday’s gross domestic product (GDP) figures from the US in order to determine near-term trade direction.
Aussie inflation numbers might portray soft price pressure whereas the US economic growth is expected to weaken.
For the purpose of immediate catalysts, the US new home sales, house price index and Richmond Fed Manufacturing Index will be given higher importance coupled with news developments surrounding the US-China trade talks.
AUD/USD Technical Analysis
Even if 50-day simple moving average (SMA) level of 0.7110 is likely immediate support for the pair, major attention could be given to the seven-week-old ascending trend-line near 0.7095 as a break of which can fetch the quote 0.7050 and 0.7030 rest-points.
Meanwhile, an upside closing beyond 100-day SMA level of 0.7135 can propel prices to 0.7170 and 200-day SMA level of 0.7190.
Article by FXStreet