The AUDUSD pair has hit a fresh session low as it tests 1-hr 200-MA. Read on and know more about how the pair trades with the 31 January AUDUSD Technical Outlook.
31 January, GKFX – The Aussie dollar is extending the post-CPI drop possibly due to weak China manufacturing PMI release and the falling Aussie-US 10-year yield spread.
- Aussie extends post-CPI drop.
- China Jan Mfg PMI at 8-month low.
- Aussie risks losing “high yielding” currency tag.
The currency tested the 1-hour 200-MA of 0.8046 a couple of minutes ago and now trades at 0.8060 levels. China NBS January manufacturing PMI printed at 51.3, the lowest since May vs forecast of 51.5. As per Reuters report, the PMI was likely hit by pollution crackdown and higher financing costs.
Meanwhile, NBS Jan non-manufacturing came-in at PMI 55.3, highest since September, but is offering little support to the AUD. Further, the 10-year Aussie-US yield spread has dropped to the lowest since March 2001. So, the 1-hour 200-MA support may not hold.
31 January AUDUSD Technical Outlook
A 1-hour close below 0.8046 (1-hour 200-MA) would open doors for a deeper pullback to 0.80 (psychological support) and 0.7956 (Jan. 23 low on 1-hour chart). On the higher side, breach of resistance at 0.8082 (1-hour 100-MA) could yield re-test of 0.8105 (Jan. 30 high of 1-hour) and 0.8136 (Jan. 26 high).
This article 31 January AUDUSD Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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