Aussie Dollar Plunged Amid Ongoing Concerns On China

Fundamental Analysis

* China Jitters: The Australian Dollar continues to decline against the US Dollar due to growing concerns over China’s economic outlook, Australia’s largest trading partner. Investor anxiety is rising as China’s September data highlights deepening deflationary pressures, casting doubt on the effectiveness of its stimulus measures. This has driven a shift toward the safe-haven US Dollar. Additionally, expectations that the Reserve Bank of Australia (RBA) may cut interest rates by 25 basis points by the end of the year are further weighing on the Aussie.

Technical Analysis

* Technical Breakout: AUDUSD was traded lower following prior breakout below the previous support level 0.66900. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to likely further extend its losses.

*Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 0.66200. Conversely, a potential reversal is also to be expected and the price could head back towards 0.67550 after it breach back above the level 0.66900.

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Potential Risks

Looking ahead, investors will be closely monitoring key U.S. data releases, particularly Retail Sales, which could provide further insights into the economic outlook. In addition, attention will remain on the economic developments in its key trading partners, China as shifts in the country’s economic performance could influence the Aussie movement.

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Monitoring

Stay updated on US and Australia data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.