China weighs on AUD
Christophe Chevalier May 22, 2020 4:24 PM
China didn’t set an annual growth target and puts pressure on Hong Kong, which negatively impacts the AUD.
Australia remains closely linked to Chinese economy and AUD suffers from every bad news from China. This morning, China didn’t set an annual growth target and also announced it will “improve” national security in Hong Kong by writing a new law into the city’s charter.
From a technical point of view, on a daily chart, AUD/USD as broken below a rising trend line and is capped by its 50-period moving average (in blue) as the daily RSI stands within its selling area. Readers may therefore consider the potential for further weakness below horizontal resistance at 0.6575. The nearest threshold would be set at horizontal support at 0.6505 and a second one would be set at previous overlap at 0.6480 in extension.
Source: TradingView, GAIN Capital
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