The Australian dollar extend the bear-leg from Oct 4 lower top (0.6547) into sixth straight day, hitting the lowest since Apr 2020, in early Tuesday’s trading.
Broad risk-off mode on economic uncertainty and growing geopolitical tensions keep the Aussie under pressure, with bad news from China, adding to negative picture.
The latest data showed that China’s services sector contracted for the first time in four months, a surge of new Covid infection cases has been registered in some areas and the United States announced the new package of export restrictions towards China, which together contributed to weakening sentiment.
Fresh bears face headwinds from oversold daily studies, with limited upticks (ideally to be capped under 0.6400 zone) to offer better levels to re-enter larger bearish market for extension towards targets at 0.6098/0.6000 (Fibo 76.4% of 0.5509/0.8007 rally / psychological).
Caution on break above 10DMA (0.6426) that would slow bears and expose pivotal barriers at 0.6530/50 zone (falling 20DMA / lower platform), violation of which would signal stronger correction.
Res: 0.6305; 0.6363; 0.6426; 0.6526.
Sup: 0.6247; 0.6200; 0.6098; 0.6000.
