AUD/USD outlook: Aussie dollar came under additional pressure after China's GDP fell below expectations

Slobodan Drvenica Windsor Brokers

AUD/USD

Australian dollar remains firmly in red for the second consecutive day and extends pullback from multi-week tops (0.6894).

Weaker than expected China’s GDP added pressure on Aussie dollar, as yuan and China stock prices fell after data.

Growing expectations of RBA rate hike pause further harm the sentiment and expected to additionally weigh on currency.

Reversal pattern is forming on daily chart, with initial signal expected on close below broken Fibo support at 0.6825 (23.6% retracement of 0.6598/0.6894 rally) and extension below 0.6781 (Fibo 38.2%) needed to confirm signal.

Fading bullish momentum and stochastic about to emerge from overbought zone on daily chart, contribute to negative signals, though overall picture is still bullish and warning that pullback might be a healthy correction, if pivotal support at 0.6780 stays intact.

Res: 0.6825; 0.6842; 0.6894; 0.6915.
Sup: 0.6800; 0.6780; 0.6745; 0.6720.

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.6943
2. R2 0.6919
3. R1 0.6879
PP 0.6855
1. S1 0.6815
2. S2 0.679
3. S3 0.675

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.