27 Jul 2015
AUD/USD: Offered tone intact around 0.7270, US data eyed
FXStreet (Mumbai) - The Australian dollar maintains an offered tone versus the US dollar in early Asia, driving AUD/USD towards six-year lows, as traders continue to ditch the OZ currency ahead of key economic releases from both the continent later this week amid subdued commodity prices.
AUD/USD capped below 0.7300
Currently, the AUD/USD pair trades -0.12% lower at 0.7271, oscillating in a tight range below 0.73 handle. Markets continued to dump the Australian dollar in favour of the US dollar as weaker Chinese data and lower oil and gold prices continue to dampen investors’ sentiment.
On Friday, the AUD/USD sharply dropped following the news that Chinese factory production had contracted at the steepest pace in fifteen months according to HSBC's manufacturing PMI in July.
Moreover, the situation on the commodities market, with bullion prices reaching multi-year lows added extra bearish pressure to the Aussie.
Traders now look forward to a host of crucial US economic data to be released in the week along with a slew of data from Australia as well. While Friday’s FOMC decision and Thursday’s RBA Stevens speech are expected to emerge the main markets movers this week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7300 levels, above which gains could be extended to 0.7363 (July 24 High) levels. On the flip side, support is seen at 0.7257 (July 24 Low) levels from here it to 0.7326 (July 20 Low) levels.
AUD/USD capped below 0.7300
Currently, the AUD/USD pair trades -0.12% lower at 0.7271, oscillating in a tight range below 0.73 handle. Markets continued to dump the Australian dollar in favour of the US dollar as weaker Chinese data and lower oil and gold prices continue to dampen investors’ sentiment.
On Friday, the AUD/USD sharply dropped following the news that Chinese factory production had contracted at the steepest pace in fifteen months according to HSBC's manufacturing PMI in July.
Moreover, the situation on the commodities market, with bullion prices reaching multi-year lows added extra bearish pressure to the Aussie.
Traders now look forward to a host of crucial US economic data to be released in the week along with a slew of data from Australia as well. While Friday’s FOMC decision and Thursday’s RBA Stevens speech are expected to emerge the main markets movers this week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7300 levels, above which gains could be extended to 0.7363 (July 24 High) levels. On the flip side, support is seen at 0.7257 (July 24 Low) levels from here it to 0.7326 (July 20 Low) levels.