Audusd Trades Daily Lows Despite Us Dollar Weakness

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Audusd Trades Daily Lows Despite Us Dollar Weakness

AUD/USD Trades Near 0.6800 (Daily Lows) Despite US Dollar Weakness

AUD/USD pair met fresh selling momentum as soon as it made a little upside towards the 0.6835 region. This marks the 3rd day in a row that the AUD/USD pair continues to dwell in the bearish territory. According to experts, a weakness in the US Dollar is helping the pair to limit its losses.

The July meeting of the RBA (Reserve Bank of Australia) was hawkish, but it still didn't help the AUD to stage a meaningful recovery. It appears that the slow growth in China is affecting Australia's economy and thus putting the AUD under pressure.

China On The Path Of Deceleration

Recent data coming out of China is showing clear signs of economic deceleration, which is also affecting the China-proxy such as Australia. Looking ahead, a fresh stimulus package from the Chinese authorities will help the AUD/USD to limit its losses.

NDRC (National Development and Reform Commission), which is also known as the top economic planner of China has also reaffirmed its stance on supporting the Chinese economy through its policies without any delay.

At the same time, a bearish USD also calls for some caution and will likely put a cap on an aggressive bearish trend in the AUD/USD. After all, the US Dollar index is already at historic lows as the chances of a less hawkish Fed have increased manifolds.

The market participants are mostly convinced that the central bank will end the policy tightening (high-interest rate) campaign after the upcoming meeting. So even that news is enough of a reason for the USD bulls to be on the defensive.

Looking ahead, the Chinese government will make introducing new measures to support the economy. This will have spill over effects on other economies that are trade dependent on China, such as Australia. In turn, this will lend support to the AUD (Australian Dollar) as well.

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