19 Jan 2015
AUD/NZD drops on China growth woes
FXStreet (Mumbai) - The Australian dollar dropped versus its Oz counterpart today; as markets fretted over Chinese equities sell-off and expectations of lower than forecasts China’s GDP data.
Currently, the AUD/NZD pair trades at 1.0531, down 0.23% on the day, having posted day’s low at 1.0524 couple of hours ago. The cross in AUD/NZD slipped largely on Aussie weakness versus the greenback after equities in China fell as the country’s securities regulator implemented measures to suspend three of the nation’s biggest brokerages from adding margin-trading accounts for three months. Also, speculations that China’s GDP is expected to have missed market forecasts added to the downside in the Aussie. Growth concerns in China may dull the country’s external demand on which the Australian economy thrives. Australia is heavily dependent on China for its exports.
The cross remains pressured as the AUD/USD trades at 0.8206 levels, down -0.27% on the day. While NZD/USD trades almost flat at 0.7791, at time of writing.
AUD/NZD Technical Levels
The pair has an immediate resistance at 1.0541 (5-DMA) levels, above which gains could be extended to 1.0574 (Today’s High) levels. On the flip side, support is seen at 1.0507 (10-DMA) levels, from here it to below 1.0472 (Jan 5 Low) levels.
Currently, the AUD/NZD pair trades at 1.0531, down 0.23% on the day, having posted day’s low at 1.0524 couple of hours ago. The cross in AUD/NZD slipped largely on Aussie weakness versus the greenback after equities in China fell as the country’s securities regulator implemented measures to suspend three of the nation’s biggest brokerages from adding margin-trading accounts for three months. Also, speculations that China’s GDP is expected to have missed market forecasts added to the downside in the Aussie. Growth concerns in China may dull the country’s external demand on which the Australian economy thrives. Australia is heavily dependent on China for its exports.
The cross remains pressured as the AUD/USD trades at 0.8206 levels, down -0.27% on the day. While NZD/USD trades almost flat at 0.7791, at time of writing.
AUD/NZD Technical Levels
The pair has an immediate resistance at 1.0541 (5-DMA) levels, above which gains could be extended to 1.0574 (Today’s High) levels. On the flip side, support is seen at 1.0507 (10-DMA) levels, from here it to below 1.0472 (Jan 5 Low) levels.