AUDUSD: Fundamental Weakness Can Send The Price to 0.6950
AUDUSD trades 0.38 percent higher at 0.7035 despite Aussie jobless rate remained steady at 5.2% as expected by analysts’ but only 500 jobs were created over the month, below expectations for an increase of about 9,000 while yesterday another disappointment came from the Australia Westpac Leading Index, month over month, which declined to -0.1% in June from previous reading of -0.08%. The Westpac Leading Index, month over month, came in at -0.08% for June.
Yesterday AUD felt the heat as number of Aussie fund management companies have exposure to financing projects related to Chinese wealth manager Noah Holdings, which said that 3.4 billion Yuan of financial products linked to entertainment-to-health care conglomerate Camsing Global’s accounts receivables from JD.com were in danger of default.
AUDUSD currently is driven by a positive momentum which can end soon and probably at 0.7090 the 200 day moving average. Fundamental data do not support a move higher so short positions initiating at current level looks safe, with a stop loss at 0.7090. On the downside first support now stands at 0.70 round figure, and today’s low, a level that if breached will signal the closing of long positions that started to follow the recent uptrend and some traders may enter short positions targeting the 0.6950 mark where the 50 day moving average stands.Don’t miss a beat! Follow us on Twitter.