Aussie hit new multi-year low after downbeat Chinese data
The Aussie dollar started trading on Monday in red after suffering heavy losses previous week (down 6.2%), coming under increased pressure from downbeat Chinese data.
China’s economy slowed down sharply in February following Corona virus outbreak, with retail sales falling by 20.5% and industrial production dropping by 13.5% , at the fastest pace in three decades.
The pair hit new lowest level since Nov 2008 (0.6095) on Monday and eyes psychological 0.60 support (also Oct 2008 trough).
Oversold daily studies suggest that bears may take a breather, but so far without clearer signals.
Consolidation with limited upticks (preferably under 0.6300) is expected to precede fresh push lower.
Res: 0.6261; 0.6300; 0.6326; 0.6390
Sup: 0.6095; 0.6000; 0.5926; 0.5876