The Australian Dollar (AUD) underperformed Monday extending declines to 0.6790 against the US Dollar (USD) as risk markets suffered. Data reporting a weaker Chinese economic situation spooked markets overnight. Quarterly growth came in at 0.8% after a 2.2% release in Q1, also the y/y growth forecast was downgraded from 7.1% to 6.3%. Next week’s Fed decision could start to pressure the AUD as expectations increase for the Fed to hike again, core inflation is declining, however jobs data is still tight worrying the central bank. On the chart we see a “fib” setup with support at 0.6800 offering a floor of sorts.
Current Level: 0.6820
Resistance: 0.6890
Support: 0.6490
Last Weeks Range: 0.6622-0.6842