Audusd Declines On Mixed Chinese Data

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Audusd Declines On Mixed Chinese Data

Aud/Usd Declines To 0.6600 On Mixed Chinese Data

The AUD/USD pair has started to turn lower on strong bearish momentum. The AUD/USD appears to be testing the 0.6600 support as the traders are favoring the greenback.

The decline in the AUD/USD started after the release of weak data on Chinese home prices and Australian job ads data. So now, the AUD/USD is feeling the heat due to a weaker jobs market and mixed Chinese data.

Aud/Usd Stuck In 0.6590 - 0.6709 Trading Range

The AUD/USD pair is seen trading in the 0.6590 - 0.6709 trading range and appears to be targeting more downside. If the 0.6600 level fails to hold, the next stop will be 0.6580, 0.6550, and then the 0.6500 support level.

According to a currency expert, the trading direction of the AUD/USD in the short-term is sideways. The current outlook suggests that the AUD bears will drag the pair down, which will lead to range-bound movement.

To put an end to the rangebound trading, the AUD/USD pair will have to get out of the range with strong momentum. A break out of the upper range will send us towards the next resistance levels at 0.6650, 0.6680, and then the 0.6700.

The chances of a bullish break of the trading range are more likely than a bearish break. In simple words, there is a higher chance that the AUD will gain the upper hand against the USD as compared to the other scenario.

Once the AUD/USD makes a bullish break, the next target will be 0.6770, while a bearish break will send us toward 0.6521.

In the USA, the market is now firmly believing in just one rate cut this year as opposed to three. In Australia, the labor market is showing signs of weakness, while the Chinese data is also weighing heavily on the AUD. Despite this, the AUD/USD will likely turn higher in the coming months as opposed to lower.

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