AUD/USD Plunges to a New 2-Month Low of 0.7000 After US Data

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The AUD/USD currency pair on Friday plunged to a new 2-month low of about 0.7000 following the latest round of US data. The currency pair continues to trade in a sharply descending formation amid increased bearish pressure.

The pair has now fallen more than 300 pips since the start of the week and seems set to hit lower levels in the coming week. It made a slight rebound late on Friday tp avoid falling to oversold levels of the 14-hour RSI in the 60-min chart. 

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in the US market. On Friday, the preliminary Australia’s trade balance for August edged lower to A$ 4.294 billion down from A$4.607 billion in the previous period. The country’s department of trade posted an improved change in exports of -2% compared to the previous change of -4%. However, preliminary data for August imports continued to disappoint with a change of -7% versus a previous reading of 7%. On Wednesday, Australia’s preliminary seasonally-adjusted retail sales for August disappointed with a change of -4.2% compared to a previous change of 3.2%.

In the US, durable goods orders for August missed the expectation of 1.5% with a change of 0.4% on Friday. Durable goods orders ex-transportation also missed 1.2% with 0.4% while durable goods orders ex-defense beat 0.1% with 0.7%. On the other hand, US nondefense capital goods orders ex-aircraft outperformed the expectation o f0.5% with 1.8%. 

AUD/USD Technical Analysis (the 60-min Chart)

Technically, the AUD/USD currency pair appears to be trading within a sharply descending wave formation in the 60-min chart. This indicates a strong short-term bearish bias in the market sentiment. 

The bears will be looking to extend the current declines towards 0.6971 or lower to 0.6923. On the other hand, the bulls will target short-term rebound profits at around 0.7070 or higher at 0.7150.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to have recently plunged following a sharp bearish breakout from an ascending channel. The pair is now pinned at the 23.60% Fib level on the way down off the previous high. It appears to be approaching oversold levels in the 14-day RSI.

The bears will target long-term profits at around 38.20% Fib level at 0.6881 or lower at 0.6762. On the other hand, the bulls will target long-term rebound profits at around 0.7173 or higher at 0.7302.

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