AUD/USD still looks grim
AUD/USD continues descend. As we expected, Aussie is approaching support at $0.9300/9290 (psychological level, daily Ichimoku Cloud top). We think that the bears will be able to test $0.9382 (Sept. 30 low) which is guarding $0.9200 (bottom of the Cloud). Resistance is provided by the 55-day MA at $0.9387. The bears will continue dominate the market until the pair is below last week’s high at $0.9542.
Aussie fell as NAB business confidence fell by the most since 2011 and traders weighed prospects for growth in China where there’s an important meeting of the Communist leadership today.
Chart. Daily AUD/USD