Technical Analysis: Commodity currencies head lower. Led by the AUDUSD via ForexLive

The Commodity Currencies are under pressure in today's trading (CAD, AUD and NZD)

A measure of commodities overall can be found in the CRB (Commodity Research Bureau) Index. This is an index of a the major commodities including Energy, Grains, Industrials, Livestock, Precious Metals and Soft Commodities.

Technical Analysis; The CRB Index is trading at the lowest level since January 2014

Looking at the chart of that index, it is trading at the lowest level since mid  January 2014. The momentum to the downside has been accelerating. Contributing to the weakness is the slowdown in China and a sluggish EU economy as well.

Yesterday, China's Finance minister Lou Jiwei said that growth in China faced downward pressure. The Peoples Bank of China, announced stimulative measures last week to combat the slowing economy.

The commodity currencies are showing weakness with the AUD the weakest

A snapshot of the commodity currencies today, show that they all are showing weakness (see chart above).  The  Australian dollar is the weakest of the three. Australia is impacted the most by a slowdown in China.

Technical Analysis: AUDUSD chart shows the pair is trading at the lowest level since February 2014

Looking at the AUDUSD from a technical perspective, the pair is trading at the lowest level since February 4th.  The move lower from the daily chart has been quite dramatic this month, with the pair moving from a high of 0.9400 to the low today of 0.8852 so far today (the pair is trading at the lows).

The hourly chart above is testing a lower trend line connecting the recent lows over the last 5 trading days. Each bounce off this line has been minimal, but there may be an interest to take some profit/dip buy – with stops below a new lows.

Technical Analysis: AUDUSD is testing the lower trend line.

posted via ForexLive