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AUD/USD extends losses beneath 0.7100 because the Aussie stays beneath strain

  • Aussie hit after a Chinese language port banned coal from Australia. 
  • AUD/USD reversed from 2-week highs to 1-week lows in a couple of hours. 

The AUD/USD pair reversed sharply, falling from 2-week highs to 1-week lows in a couple of hours. The transfer decrease was triggered throughout the Asian session following a report that China’s Dalian port banned coal from Australia. In the course of the US session, the Aussie resumed the decline. 

Earlier immediately, the pair peaked at 0.7205, the best degree since February 6. Since then it has fallen greater than 100 pips. The higher-than-expected Australian employment report was fully offset by the Chinese language information. 

On US hours, the US greenback gained momentum and rose throughout the board, notably towards the Aussie, that continues to be among the many worst performers. AUD/USD dropped to 0.7075, the bottom in per week. As of writing, trades barely above the low, beneath strain.

The technical outlook factors to additional losses, and it may check February lows situated round the important thing assist degree of 0.7050/55. A break decrease would add extra unfavourable strain. 

“It appears seemingly that different Chinese language ports could proceed to simply accept Australian coal. However, it’s our view {that a} plethora of draw back dangers will drive the RBA to chop rates of interest this yr. As a consequence we keep our view that AUD/USD has additional to fall”, wrote Rabobank analysts. They forecast AUD/USD at 0.68 on a 12-month view. 

A pointy drop in AUD/NZD

The Aussie sell-off pushed AUD/NZD sharply to the draw back and not too long ago printed contemporary lows beneath 1.0400. The pair reversed from weekly tops to 3-day lows, breaking key short-term assist ranges. Now a check of the YTD low at 1.0365 appears seemingly. 

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