AUD/USD Makes Another Leap Lower After Weak Economic Numbers
Skerdian Meta • 1 min read
Commodity Dollars have turned quite bearish in the last two weeks as the sentiment has deteriorated in the financial markets. Risk assets such as the Aussie are suffering while safe havens are surging, with GOLD making new highs and USD/JPY making new lows below 106 today.
So, the trend has been bearish for AUD/USD and it has been quite strong, looking at the H1 chart. The price has found resistance at the smaller period moving averages such as the 20 SMA (grey) and the 50 SMA (yellow), which have been pushing this pair lower without waiting for the larger moving averages to catch up.
We have played the downside in this pair and our trades here have been going on really well. The last signal was closed this morning after some weak figures from Australia and China. The Chinese Caixin services missed expectations of 52.0 points and slipped to 51.6 points while the AIG Services Index fell to 43.9 points from 52.0 points previously, which means contraction for this sector.
As a result, AUD/USD took a 50 pip dip lower overnight, hitting the take profit target of our sell signal which we opened last week. We will try to sell retraces to the 20 and 50 SMAs again on this pair, but they are nowhere to be found for now as this pair continues to slide lower.