AUD/USD chart - Trading View
Technical Analysis: Bias Bearish
AUD/USD is extending a volatile trading session with session highs at 0.6302 and lows at 0.6094.
The pair failed to capitalize on early recovery attempts, trades 0.30% lower at 0.6164 at around 09:40 GMT.
Data released earlier today showed China’s factory production slumped at the sharpest pace in 30 years in the first two months of the year.
China's industrial output fell 13.5 percent in January-February from the same period a year earlier, its weakest reading since January 1990.
Fixed-asset investment in China fell 24.5 percent year-on-year, against forecasts for a 2.8 percent rise and falling from the 5.4 percent growth in the prior period.
Aussie largely muted post dismal China data. Focus remains on RBA as the central bank has showed readiness to purchase government bonds and take further measures.
Back-to-back spinning tops at lows suggest bearish exhaustion. Also, bullish RSI and Stochastics divergence keeps scope for upside.
Markets eye RBA moves as the Aussie central bank recently showed readiness to purchase government bonds and take further measures.
Also, risk-off likely to drive flows away from perceived riskier currencies – like the Aussie.
Major trend is strongly bearish. Next bear target lies at 0.6006 (Oct 2008 low). Violation there will open further downside.
5-DMA is immediate resistance at 0.6316. Break above 200H MA at 0.6491 to see near-term upside.
