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FxWirePro: AUD/USD dumped to fresh multi-week lows, further weakness could test 0.7068

AUD/USD dumped to fresh multi-week lows at 0.7107, no respite for the Aussie here, further weakness on charts.

  • Caixin's China Services PMI fell to 50.2 in December from 51.2 a month earlier, suggesting China's tertiary industry grew at the weakest pace since July 2014.
     
  • PBoC fix was at 6.5314 on Wednesday, the highest since April 2011, mainland Chinese stocks gained after the fix, but rest of Asia still in the red.
     
  • AUD/USD is testing major support at 0.71 levels, break below could see 0.7068 and then 0.7016 levels.
     
  • Price action has dipped below the daily cloud, momnetum indicators are all biased lower.
     
  • Immediate resistance is seen at 0.72, while support on the downside is at 0.71 (rising trendline) and further below at 0.7096 (Dec 16 lows).
     

Recommendation: Good to sell rallies around 0.7110, SL: 0.7170, TP: 0.7068/0.7020/0.70

 

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