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AUD/USD: Heaviness persists, PBoC headlines weighing?

FXStreet (Bali) - AUD/USD keeps weakening in Asia, with the lowest level hit so far at 0.8660, with comments over the weekend by PBOC chief economist on no need for big stimulus seemingly weighing on the AUD.

PBOC chief economist Ma Jun, said on the weekend, that "China’s slowing economy does not need any big stimulus, because the jobs market continues to be strong", adding that "although the country’s overheated real estate sector is slowing sharply, he did not see a substantial net impact on jobs", also noting that "although we worry about some downside risk like the real-estate slowing down and so on, there are also growth engines, including the service sector in general, the Internet in particular, and healthcare..."

Worth noting that the Chinese headlines come on the back of another negative input for the Australian Dollar last week, after China decided to re-introduce levy coal import tariffs, with Australian miners to be especially affected by the measures.

Valeria Bednarik, Chief Analyst at FXStreet, notes: "The short term picture presents a clear negative tone as per price well below a strongly bearish 20 SMA and indicators holding near oversold levels, albeit lacking strength at the time being. In the 4 hours chart however, technical readings present a clear bearish momentum, while 20 SMA gains bearish slope around 0.8770 latest resistance for this Monday. A downward acceleration through 0.8640 however, should deny possibilities of a recovery, and see the pair extending its slide towards 0.8550."

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