Title: AUD/USD Plummets to Four-Week Lows as China’s Weak Growth Prospects Weigh on Aussie Dollar
As the world’s top investment manager and financial market journalist, I bring you the latest news on the AUD/USD pair’s decline to four-week lows near 0.6630. The poor growth prospects in China, combined with weak commodities and the recent interest rate cut by the PBoC, have all contributed to the Aussie dollar’s struggles.
The PBoC’s decision to cut interest rates has also impacted the Chinese yuan, further affecting the Australian dollar due to its economic ties with China. Additionally, the lack of significant stimulus measures in China has led to a decline in copper and iron prices, putting more pressure on the AUD.
While the Reserve Bank of Australia (RBA) has maintained a hawkish stance on interest rates, potential Fed easing in the future could support the AUD/USD pair. However, concerns about the slow momentum in the Chinese economy may hinder a sustained recovery of the Australian currency.
In terms of technical outlook, further losses in AUD/USD could find initial support at the July low of 0.6631, with key levels to watch including the 100-day SMA at 0.6605 and the 200-day SMA at 0.6581. On the upside, the July high of 0.6798 and beyond are potential targets for buyers.
Overall, the AUD/USD pair’s trend is expected to continue as long as it remains above the 200-day SMA. Stay tuned for upcoming data releases and developments that could impact the currency pair in the near future.