AUD/USD opens Tuesday 0.6990, slipped to hit session lows at 0.6945 and has since pared some losses to currently trade at 0.6955.
- More disappointing data from China and falling commodity prices sent investors scurrying away from risk
- Worries about the health of the Chinese economy grew after industrial firms suffered their biggest profit drop in four years
- Poor Chinese data fuelled a selloff in global equities and iron ore, Australia's top export earner, setting the tone for the commodity currencies
- Bears firmly in charge, daily moving averages pointing south, further losses likely
- China will release the Caixn Manufacturing PMI's along with NBS Manufacturing data later this week, which markets will closely follow for further cues
- Another major event for the week will be the Nonfarm Payrolls in light of the forthcoming FOMC meeting in October
- Immediate support for the pair seen at 0.6940, breaks below could expose 0.6907 (Sept lows), while resistance might be located at 0.7054 (20 DMA)
