The Aussie surrendered to pressure from the weak Chinese releases over the weekend and fell below the 0.90 level. It came after a struggle during the Asian session, but as traders in Europe arrive, the level is gone
— more coming
New motor vehicle sales dropped by 1.8% in Australia during August and the drop reported in July was revised to the downside: from 1.3% to 1.5% according to the new data. This added a bit more pressure, but it wasn’t the main trigger.
China, Australia’s No. 1 trade partner, reported a y/y rise of only 6.9% in industrial output during the month of August – the worst since 2008. This added to already falling prices of iron ore.
The new low is 0.8989. The pair hasn’t gone too far, but the weekend gap is certainly visible on the chart and doesn’t bode well for the A$. These are the lowest level since March.
Further levels below are 0.8910 and 0.8820 and 0.8740. On the topside, 0.9060 could stop a recovery attempt. For more, see the AUD to USD forecast.
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