Despite optimistic rhetoric by the RBA officials regarding economic recovery in Australia earlier today, during the Asian session the AUD/USD pair fell.
The pair was pressured by the Trade Balance data from China that showed a decline in trade volumes for September. Exports fell by 1.1%, while imports shrank by 17.7% against forecasted 15% fall.
The pair is going to remain under pressure as long as the Chinese economic growth is slowing down and commodities’ prices are falling. The pair receives some support from the interest rate in Australia, currently at 2%.
Support and resistance
The pair could not reach key resistance levels at 0.7470 (ЕМА144 on the daily chart) and 0.7500 (23.6% Fibonacci correction). A further fall would send the pair towards 0.7200 (ЕМА50 on the daily chart), 0.7150 (ЕМА200 on the 4-hour chart) and 0.6910 (year lows). However, a breakout of the level of 0.7380 could resume a short-term upward trend.
On the 4-hour chart, OsMA and Stochastic give sell signals, and start turning to sales on the daily chart.
Support levels: 0.7200, 0.7150, 0.7100, 0.7035, 0.6960, 0.6910.
Resistance levels: 0.7380, 0.7400, 0.7470, 0.7500.
Short positions can be opened below the level of 0.7300 with targets at 0.7225, 0.7190 and stop-loss at 0.7320.
Long positions can be opened from the level of 0.7340 with targets at 0.7380, 0.7430 and stop-loss at 0.7310.