China’s lockdown to be blamed for AUDUSD demise?
“AUDUSD extend its bearish tilt as Trade Balance eases due to China’s ongoing lockdown.”
Aussie dollar took a plunge towards fresh intraday low following downbeat economic data from the region. For the month of July, Australia’s Trade Balance came in at only 8,733 million versus forecast of 14,500 million. The data suggests lower exports due to ongoing lockdowns in China due to zero covid policy. In addition, cautious mood among traders before the release of key data from Europe and US exerts additional pressure on the currency.
Quick recap on AUDUSD
Overall, AUDUSD remains skewed towards the downside as prior rebound attempts were rather short-lived.
AUDUSD Weekly Technical Analysis
From weekly perspective, the pair retest its previous low near 0.6730, a level which will provide confirmation on future trend.
AUDUSD Daily Technical Analysis
For the time being, recent price action shows possible reversal from the downside, coinciding with diminishing momentum from MACD.
ORDER: SELL STOP
STOP LOSS: 0.6740
Target 1: 0.6640
Target 2: 0.6600
ZFX Analyst’s Comment
While AUDUSD remains skewed towards the downside, we will wait for its bullish corrective phase to be over before entering the market.
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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