AUD/USD remains deep in red near 0.76

FXStreet (Mumbai) - The Australian dollar continues to get smashed against the US dollar in the early European morning, after decline in Chinese imports triggered a massive AUD/USD sell-off. While World Bank’s slashing China’s 2015 growth forecasts also added to slump.

AUD/USD retraces from 0.7581

Currently, the AUD/USD trades lower by -1.10% at 0.7598, recovering from fresh four day lows reached at 0.7581 levels. AUD/USD remains vulnerable falling more than 100 pips on Monday after Chinese trade data missed the forecast by a wide margin. Australia is heavily dependent on China for its exports.

Imports to the world's second-biggest economy plunged 12.3% in March compared with the same month a year ago, adding to a more than 20% decline in imports in February, and coming in worse than the expected 10.0% decline.

Moreover, reports that the World Bank has cuts 2015 China GDP forecast to 7.1% from 7.2% on its World Bank's East Asia Pacific Economic Update publication further contributed to the sell-off in AUD/USD.

On the macro econimc front, confidence figures in Australia will be a key factor, along with Australian employment numbers, besides US retails sales numbers and China GDP data due later this week.

AUD/USD Technical Levels

The pair has an immediate resistance at 0.7665 levels, above which gains could be extended to 0.7700 levels. On the flip side, support is seen at 0.7574 levels from here it to 0.7530 levels.