11 Aug 2015
AUD/USD challenges support at 0.7300
FXStreet (Córdoba) - The Australian dollar is looking to stabilize around 0.7300 after plunging more than a full cent on the back of People’s Bank of China surprise devaluation of the yuan on Tuesday.
AUD/USD fell sharply after the PBoC pushed USD/CNY 2% higher. As major exporter to China, the Aussie reacted negatively to the protectionist move, dropping nearly 120 pips in a matter of minutes. Despite a bounce attempt that was capped by the 0.7350 area, AUD/USD came under renewed pressure and it has spent the last hours barely above the 0.73 mark.
AUD/USD technical levels
At time of writing, AUD/USD is trading at 0.7310, recording a 1.35% loss on the day. On the downside, if the pair breaks decisively below 0.7300, next supports are seen at 0.7359 (Aug 3 low) and 0.7234 (multi-year low Jul 31). On the upside, resistances line up at 0.7340 (10-day SMA), 0.7400 (psychological level) and 0.7438 (Aug 11 high).
AUD/USD fell sharply after the PBoC pushed USD/CNY 2% higher. As major exporter to China, the Aussie reacted negatively to the protectionist move, dropping nearly 120 pips in a matter of minutes. Despite a bounce attempt that was capped by the 0.7350 area, AUD/USD came under renewed pressure and it has spent the last hours barely above the 0.73 mark.
AUD/USD technical levels
At time of writing, AUD/USD is trading at 0.7310, recording a 1.35% loss on the day. On the downside, if the pair breaks decisively below 0.7300, next supports are seen at 0.7359 (Aug 3 low) and 0.7234 (multi-year low Jul 31). On the upside, resistances line up at 0.7340 (10-day SMA), 0.7400 (psychological level) and 0.7438 (Aug 11 high).