The Australian dollar has showed a lot of resilience, holding nicely above the clear separator of ranges at 0.7280. Not any more.
The pressure on commodity prices as well as the weak Chinese data send it to lower ground, and at least it respects the next line of support.
Oil prices are trading at the lowest levels since 2009 on OPEC’s inability to make any decisions and other commodities are carried away as well. Iron ore and copper aren’t doing well at all.
China, Australia’s No. 1 trade partner, released a its trade balance figures and they weren’t too exciting: they showed a surplus of $54.1 billion, lower than expected. Exports dropped by 6.8% y/y, worse than 5% predicted. And while imports came out better than predicted, the figure was still negative: -8.7%, not really encouraging.
The improving business confidence, 5 points instead of 3 according to NAB, didn’t really cheer up the A$.
Later this week we’ll get the Australian jobs report. After a blockbuster one last month, will the jobs report help the Aussie recover?
AUD/USD lost support at 0.7280 and settled above lower support at 0.7220. Further support awaits at 0.7150 and 0.7060. 0.7280 returns to its role as resistance and 0.7360 is the next line.
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