China slows, Aussie tumbles.
“China exports slowed; imports flatten in April.”
Greenback soared to its highest level in two decades as traders seeks for safety due to global economic slowdown concerns. Earlier today, China latest data shows slower export growth since June 2020, coming in at single digit of 3.9% for April. The data has raised traders’ eyebrows as repercussions from recent lockdown began to slip into their economic momentum. Likewise, the data came in contrast as to recent data from the US. Last month, Nonfarm Payrolls rose 428,000, significantly higher than consensus forecast. The data has cemented the course for more rate hikes form Federal Reserve although a major basis point leap is still far from reality.
Quick recap on AUDUSD
AUDUSD lost its footing as it did not breach an earlier resistance level at 0.7261.
AUDUSD Weekly Technical Analysis
The pair is currently headed towards 0.6982, the strongest support ever since its last encounter in early 2022.
AUDUSD Daily Technical Analysis
From the daily chart, bears began to gain their momentum, thrusting towards the target at 0.6982. Such is clear from recent pickup in bearish momentum when referring to the MACD.
ORDER: SELL STOP
STOP LOSS: 0.7075
Target 1: 0.6835
Target 2: 0.6800
ZFX Analyst’s Comment
The pair did not prove its dominance due to rising economic concerns upon China. As China seemingly reluctant to forego their zero tolerance towards coronavirus cases, this may pull their economic momentum further downwards into the oblivion. For the time being, we will keep on a lookout at 0.6982 for a meaningful breakout that opens further downside opportunities.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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