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Market Outlook
China slows, Aussie tumbles. - Zeal Capital Market

China slows, Aussie tumbles.

09-05-2022 09:08

“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

China slows, Aussie tumbles. - Zeal Capital Market

The pair is currently headed towards 0.6982, the strongest support ever since its last encounter in early 2022.

AUDUSD Daily Technical Analysis

China slows, Aussie tumbles. - Zeal Capital Market

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.

Trading Idea

China slows, Aussie tumbles. - Zeal Capital Market

ORDER: SELL STOP

ENTRY: 0.6960

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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