AUD/USD drops to 2-week lows, farther below mid-0.7100s

   “¢   Dismal China GDP print/global growth concerns continue to weigh.  
   “¢   The USD benefits from haven-flows and added to the selling bias.

The AUD/USD pair traded with a negative bias for the third consecutive session and is currently placed at two-week lows, around the 0.7135 region.

The pair extended last week’s retracement slide from levels beyond the 0.7200 handle and was further weighed down by a combination of negative forces. Monday’s Chinese macro data showed that the economy recorded its weakest annual growth since 1990 and was seen as one of the key factors denting sentiment surrounding the China-proxy Australian Dollar.  

Adding to this, the International Monetary Fund (IMF) lowered its global growth forecast for 2019 to the weakest in three years and fanned worries over global growth, which further collaborated towards driving haven-flows towards the US Dollar and away from perceived riskier currencies – like the Aussie.  

Meanwhile, the latest optimism over a possible resolution of the US-China trade tensions did little to lend any support, albeit might help limit further downside amid a relatively thin US economic docket, featuring the second-tier release of existing home sales data, and ahead of Thursday’s Australian employment details.  

Technical levels to watch

Immediate support is pegged near the 0.7115-10 region, below which the pair is likely to break through the 0.7100 handle and aim towards testing its next support near the 0.7065-60 horizontal zone. On the flip side, the 0.7155-60 region now becomes immediate resistance, which if cleared might assist the pair to make a fresh attempt towards reclaiming the 0.7200 handle.