Search ForexCrunch

AUD/USD  already traded at the 75 cent handle (the RBA’s target), falling to a low of 0.7587, before climbing just above 0.76.

The Australian dollar is under pressure following the  release from three  different sides. Here are the reasons for the recent fall.

  1. Australian data: Home loans in the land down under fell by 3.5%, significantly worse than 1.9% expected.  The Westpac Consumer Sentiment also dropped by 1.2% after a gain of 8%  beforehand.
  2. Chinese data: Chinese industrial production came out at 6.8% y/y, lower than 7.7% expected for the months of January and February combined. This two  month compounding attempts to eliminate the volatility  that  results from the Chinese New Year. In addition,  the China and Iron Steel Association says that the production of steel  in production in China will fall in 2015. Also Fixed Direct Investment missed with +13.9% and retail sales with +10.7%, both under predictions.
  3. USD strength: The greenback continues showing  its might across the board. The elevated expectations for the removal of forward guidance  and the consequent rate hike in June is helping the $. It is important to note that not all currencies react in the same manner, but the Aussie is one of the weaker currencies.

The Australian dollar awaits domestic employment figures. Here is how to trade the Aussie employment change with AUD/USD.

0.7625 serves as resistance and 0.75 is low support.  Here is the chart:

AUDUSD March 11 2015 falling on China Australia and USD strength technical trading

In the fresh podcast, we talk about the US economy,  the Australian and Canadian rate decisions, a potential easing in Japan, the widening gap within oil prices and an update on forex brokers after the SNBomb

Follow us on the    iTunes page