AUD/USD flirting with multi-year lows, risks breaking below 0.70 handle
• Disappointing Chinese manufacturing PMI prompts some fresh selling.
• Risk-off mood boosts USD’s safe-haven status and adds to the pressure.
• Bears await a sustained breakthrough the key 0.70 psychological mark.
The AUD/USD pair stalled its intraday attempted recovery near the 0.7045 region, with bears now eyeing a breakthrough the key 0.70 psychological mark.
The pair kicked off 2019 on a weaker note and continues to be weighed down by today's disappointing release of Chinese manufacturing data, which tracked the official survey released on Monday and slipped into contraction territory for the first time in 19 months.
Poor manufacturing data further fueled global growth concerns and triggered a fresh wave of risk-aversion trade, boosting boosted the US Dollar's relative safe-haven status and prompting some fresh selling around the China-proxy Australian Dollar.
Despite the partial US government shutdown and expectations of a dovish Fed in 2019, the prevalent risk-off mood helped revive the USD demand and further collaborated to the pair's heavily offered tone/the ongoing slide to near three-year lows.
It would now be interesting to see if the pair is able to defend the 0.70 handle or bears maintain their dominant position to confirm a fresh bearish breakdown amid absent relevant market moving economic releases from the US.
Technical levels to watch
Today Last Price: 0.701
Today Daily change: -46 pips
Today Daily change %: -0.652%
Today Daily Open: 0.7056
Previous Daily SMA20: 0.7134
Previous Daily SMA50: 0.7186
Previous Daily SMA100: 0.7192
Previous Daily SMA200: 0.7354
Previous Daily High: 0.7072
Previous Daily Low: 0.6996
Previous Weekly High: 0.7078
Previous Weekly Low: 0.7014
Previous Monthly High: 0.7394
Previous Monthly Low: 0.7014
Previous Daily Fibonacci 38.2%: 0.7043
Previous Daily Fibonacci 61.8%: 0.7025
Previous Daily Pivot Point S1: 0.7011
Previous Daily Pivot Point S2: 0.6965
Previous Daily Pivot Point S3: 0.6935
Previous Daily Pivot Point R1: 0.7087
Previous Daily Pivot Point R2: 0.7117
Previous Daily Pivot Point R3: 0.7163