AUD/USD tumbles along with China stocks, challenges 0.7200

FXStreet (Mumbai) - AUD/USD was heavily sold-off in the Asian session, as the Australian dollar tracked the accelerating Chinese stocks rout while plummeting oil and base metals prices add to the persisting risk-off moods.

AUD/USD at multi-month lows

Currently, the AUD/USD pair trades -1.29% lower at 0.7218, having tested lows at 0.7201 levels – fresh six-year lows. The AUD/USD pair remains heavy as heightening worries over the health of its top trading partner, China, following the extension of last week’s stock markets rout further fanned risk-aversion.

Markets continue to give-up higher yielding (riskier) currencies and resort to safety assets such as yen, gold, long-end treasuries to shield themselves from the prevailing global sell-off.

AUD/USD Technical Levels

The pair has an immediate resistance at 0.7265 (Today’s High) levels, above which gains could be extended to 0.7312 (Aug 23 High). On the flip side, support is seen at 0.7201 (Today’s Low) levels from here it to 0.7180 (2009 Levels).

USD/JPY: Yen gains 1 big figure on safe-haven bids, below 121

The Japanese currency continues to enjoy the safe-haven status against its American counterpart in the mid-Asian session, knocking-off USD/JPY to fresh monthly lows below 121 handle, as the risk-off sentiment heightens amid ongoing blood bath in Chinese stock markets.
Leer más Previous

China stocks bleed, SSEC collapses 8.5% - worst since Asian crisis

Last week’s sell-off extends in the Chinese equities, kicking-off this week on a weaker note as the blood bath continues after the markets were left unimpressed by the latest measures allowing pension funds to invest in the stock markets in a bid to cap the downward spiral.
Leer más Next