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Slowdown in China Economy "A Curse for AUD/USD"

AUDUSD was consolidating within a rising wedge on Friday which was giving a bearish signal for the pair. Accordingly the pair fell down from the support trend line of the rising wedge and found support at the lows of March 6. On Saturday (March 8) National Bureau of Statistics reported Consumer Price Index and Trade Balance data for China. The data showed that Chinese exports fell 18.1% on a YOY basis in February missing the expectations for a 6.8% increase following a rise of 10.6% in January. As China is Australia’s biggest trading partner this data have definitely affected the pair and the pair continued its decline. Separate report showed that the annual rate of inflation in China slowed down to 2% in February from 2.5% in January. Looking at the fib levels the pair will continue its decline and test the key support level at 50 fib level. It might go below this level and find the next support at 61.8 fib level which was acting as resistance for the pair.