China’s lockdown to be blamed for AUDUSD demise?

“AUDUSD extend its bearish tilt as Trade Balance eases due to China’s ongoing lockdown.”

Aussie dollar took a plunge towards fresh intraday low following downbeat economic data from the region. For the month of July, Australia’s Trade Balance came in at only 8,733 million versus forecast of 14,500 million. The data suggests lower exports due to ongoing lockdowns in China due to zero covid policy. In addition, cautious mood among traders before the release of key data from Europe and US exerts additional pressure on the currency.

Quick recap on AUDUSD

Overall, AUDUSD remains skewed towards the downside as prior rebound attempts were rather short-lived.

AUDUSD Weekly Technical Analysis

From weekly perspective, the pair retest its previous low near 0.6730, a level which will provide confirmation on future trend.

AUDUSD Daily Technical Analysis

For the time being, recent price action shows possible reversal from the downside, coinciding with diminishing momentum from MACD.

Trading Idea

ORDER: SELL STOP

ENTRY: 0.6690

STOP LOSS: 0.6740

Target 1: 0.6640

Target 2: 0.6600

ZFX Analyst’s Comment

While AUDUSD remains skewed towards the downside, we will wait for its bullish corrective phase to be over before entering the market.

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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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