AUD USD Fundamental Analysis 2
8/8/2016 11:02:19 AM
The bid tone around Aussie failed to gather steam in spite of strong China exports data, leaving the AUD/USD pair largely unchanged around 0.7610 levels. Pair found support at 0.7600, but the following recoil has been capped around 0.7610 levels even though Chinese data showed exports increased 2.9% in annualized terms, beating the forecast of 2.3%. Furthermore, weak imports could have capped gains in the Aussie, which is largely considered as a proxy for China. In the meantime, uptick in the treasury yields is helping the USD as well. Approval below immediate support of 0.7600 would open doors for a drop to 10-DMA of 7566, where a violation could cause a drop to 0.7490. On the other hand, a break above 0.7640 could yield a re-test of 0.7670. A break higher could mean bears are stucked in the wrong side thus leading to short unwind and a quick spike to 0.7835.