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AUD/USD: Rejected at 100-DMA drops below hourly 100-MA

FXStreet (Mumbai) - The Aussie’s nine day winning streak seems over now, as the AUD/USD pair is trading below its hourly 100-MA at 0.7285 after having rejected earlier today at its 100-DMA at 0.7364.

Off lows but weak

The pair has recovered slightly from its session low of 0.7254, but stays weak around 0.7270. The Aussie and other commodity dollars had spiked too fast in a relatively less time against the USD, making them overbought on the technical charts.

Consequently, these currencies have been sold aggressively today after the China data showed a serious drop in the imports, highlighting weak consumption in the world’s second largest economy. The possibility of the reversal is very low today as we do not have a major fundamental data scheduled for release in the US.

AUD/USD Technical Levels

The immediate support is seen at the daily low of 0.7254, under which the pair could extend the drop to 0.72 – 0.7168 (50-DMA) levels. A break below the same would expose the support at 0.7070 (Aug 26 low). On the higher side, resistance is seen at 0.7285 (hourly 100-MA), 0.7333 (hourly 50-MA), above which the pair could re-test its 100-DMA at 0.7364.

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