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AUD/USD faced renewed selling pressure at the week’s start. Rising skepticism about China’s latest stimulus measures collaborated with the sour mood. A strong USD also favored the Aussie’s downside. The Australian Dollar declined against the US Dollar on Monday following the release of weak China trade data. The AUD/USD fell by 0.45% to 0.6720. The declines in the Australian Dollar were largely due to rising skepticism about the effectiveness of China’s latest stimulus measures and a sour mood among traders. In addition, the USD continues strengthening, which is another factor pressuring the pair lower. Economic forecasts for Australia are mixed with both positive and negative indicators. On the other hand, the Reserve Bank of Australia (RBA) started to turn somewhat dovish, but financial markets anticipate a modest reduction in interest rates of only 0.25% in 2024. The short-term outlook of the Aussie will also be guided with the economic situation in China, which is a large trading partner. Daily digest market movers: Australian Dollar declines due to weak China trade data and strong US Dollar The Australian Dollar fell for two consecutive days, testing the 0.6700 support level. The US Dollar strengthened, while skepticism about China’s stimulus measures weighed on the Aussie Dollar. Copper and iron ore prices declined, contributing to the Australian Dollar’s pullback. The RBA has shifted toward a more dovish outlook, dropping guidance on short-term rate stability. Market sentiment suggests a 55% chance of an RBA rate cut by year-end. AUD/USD technical outlook: Bearish momentum presides with support at 0.6720 The Australian Dollar weakened against the USD on Monday as the Relative Strength Index (RSI) entered the negative area at 40. The RSI’s sharp decline suggests that selling pressure is rising. Additionally, the Moving Average Convergence Divergence (MACD) remains flat and red, indicating that selling pressure remains…

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Filed under: News - @ October 14, 2024 10:20 pm