AUD/USD checks the August low as China considers letting the yuan depreciate additional

The low earlier briefly touched zero.6340, which was the bottom the pair has traded since November 2023. For now, the August low of zero.6347 stays the important thing assist level on the every day/weekly chart. If that breaks, it can put into focus the October 2023 lows at round zero.6270-85 subsequent probably.

With the RBA shifting to a barely extra dovish stance this week and the most recent China headlines, it is not been an excellent week for the aussie. That particularly after the extra encouraging pop on Monday was rapidly light as merchants weren’t all too satisfied by China’s promise for extra stimulus going into subsequent yr.

The technical scenario above goes to be a key one to look at now for AUD/USD. That might result in larger losses within the days forward, regardless of the over eight% drop already for the reason that peak in September. Ache.

This text was written by Justin Low at www.ubaidahsan.com.



Source link