Sumary of AUD/USD Sinks Alongside Dow Jones as Sentiment Sours, Chinese Data Eyed:
- Wall Street indexes resumed weakness seen last week following an upbeat Monday trading session.
- The benchmark 10-year yield fell over 3%, while the Dow Jones Industrial Average shed 0.84%, closing at its lowest level since July 21.Meanwhile, the US Dollar rallied into the US session’s close after the weaker-than-expected CPI print sent the Greenback tumbling lower.
- Consumer confidence dropped to 104.1 in August from 108.8 in July.
- AUD/USD prices have mirrored the drop in the data rather closely, highlighting the deteriorating sentiment within Australia.
- China is set to report a batch of economic data prints that include house prices, fixed asset investment, industrial production, retail sales, and unemployment – all for August.
- AUD/USD Technical ForecastAUD/USD dropped below its 38.2% Fibonacci retracement level from the August/September move after falling below the 50-day Simple Moving Average (SMA).