Chinese Data causes Aussie Slump

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Chinese Data causes Aussie Slump
Chinese Data causes Aussie Slump

Chinese Data causes Aussie Slump

The Australian dollar made a new top on Monday at 0.9090 and after testing that level it has been falling continuously and has lost around 200 points within 2 days. The Australian dollar was playing at the support level of 0.8960 earlier today in the Asian session after which the Chinese economic indicators were released, where the New Loans and Money Supply figures came out less than the expected figures.

Australian economy is highly dependent as to how the Chinese economy is performing, hence this worse than expected data led to the plunge of the Aussie where it breached that support level at 0.8960 and is currently trading at 0.8893 in the European session. The pair is expected to remain bearish as long as it trades below the critical resistance level of 0.8992 so sellers can keep their positions open where the pair may target its next support levels at 0.8862 and 0.8830.

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Bears in Control

The euro couldn’t breach and sustain above its critical resistance level of 1.3690 hence sellers kept intact and brought the pair down by around 60 points today after which the euro is trading at 1.3612 where the next target for the pair is to test its support level at 1.3589, breaking of which could lead it to test 1.3547. Potential for selling the pair would remain substantial if it remains below the level of 1.3670 that is its critical resistance.

Keep it Short

The British pound lost against the greenback today where it has moved down its today’s pivot point of 1.6420 and is trading at 1.6401 after bouncing back from the support area of 1.6377. The traders are advised to keep it short where selling would be good if it remains below the resistance level of 1.6447 whereas if it moves below its today’s support of 1.6377 then its next targets would be the support levels of 1.6350 and 1.6323, breaking of which could further drag the pound to 1.6301.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com