AUD/USD tests key Fibo support ahead of China data

The offered tone around Aussie gathered pace in Asia, pushing the AUD/USD pair lower to 0.7897 (23.6% of 0.6828-0.7835) ahead of China trade data release.

Aussie ignored drop on consumer confidence

Australia Westpac consumer confidence index fell to 99.1 in July from the previous month’s reading of 102.2. Despite the weak data, the currency pair managed to take support at 0.7897 and recover to 0.7610 levels.

Traders await China data release, which is likely to show a 5% decline in exports and 6.2% decline in imports. Sliding Chinese exports could weigh over the Aussie dollar and iron ore prices.

AUD/USD Technical Levels

A break above Asian session high of 0.7624 could yield a re-test of strong resistance at 0.7643 (161.8% Fib extension of 0.6827-0.7243-0.6937). A violation there would expose 0.7723 (Mar 31 high). On the other hand, acceptance below 0.7597 (23.6% of 0.6828-0.7835) would open doors for a slide to 0.7545 (July 4 high), under which psychological level of 0.75 stands exposed.