24 Jul 2015
AUD/USD: how low can you go? Smashed down on China data
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7309 (on volatility post data and at time of writing) with a high of 0.7362 and a low of 0.7303 (at time of writing).
AUD/USD has dumped on the Chinese data> and breaks in to new year lows. AUD/USD has been edging away to the downside post the drop from through the 0.7410 level and highs scored on yesterday's business and rally from 0.7360 territory. The H&S formation has broken the neckline to the downside and represents and potential continuation.
Meanwhile, the data from overnight was supportive of the greenback's rally while commodities were soft. The US day came in with some upbeat jobs market data when the jobless claims dropped to its lowest level since Nov 1973. Gold price action in Asian trade is dropping once again, briefly breaking through the multi-year trend low of $1,083.50 while will be adding to the bears case. Meanwhile, the Caixin Manufacturing PMI (Jul) from China came in lower than expected at 48.2 vs 49.7 and pressures the AUD/USD lower to new yearly lows on a 15-month low for the PMI's.
Technically, AUD/USD has eyes on 0.7200
Bears will keep attacking the 0.7300 level now and the new yearly low on a continuation of the down trend unless fundamentals turn around dramatically, which is highly unlikely given the divergence between the state of economies and Central Banks. On recoveries to the upside, however, 0.75 stands as key resistance.
Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart however, the pair maintains a neutral-to-bearish stance, as the price is now below a horizontal 20 SMA at 0.7390, whilst the technical indicators have turned lower around their mid-lines. "At this point however, the pair needs to break below the multi-year low set at 0.7327 last week", (which it just has!!) "...to confirm a new leg lower, eyeing then the 0.7200 level as the next big bearish target."
AUD/USD has dumped on the Chinese data> and breaks in to new year lows. AUD/USD has been edging away to the downside post the drop from through the 0.7410 level and highs scored on yesterday's business and rally from 0.7360 territory. The H&S formation has broken the neckline to the downside and represents and potential continuation.
Meanwhile, the data from overnight was supportive of the greenback's rally while commodities were soft. The US day came in with some upbeat jobs market data when the jobless claims dropped to its lowest level since Nov 1973. Gold price action in Asian trade is dropping once again, briefly breaking through the multi-year trend low of $1,083.50 while will be adding to the bears case. Meanwhile, the Caixin Manufacturing PMI (Jul) from China came in lower than expected at 48.2 vs 49.7 and pressures the AUD/USD lower to new yearly lows on a 15-month low for the PMI's.
Technically, AUD/USD has eyes on 0.7200
Bears will keep attacking the 0.7300 level now and the new yearly low on a continuation of the down trend unless fundamentals turn around dramatically, which is highly unlikely given the divergence between the state of economies and Central Banks. On recoveries to the upside, however, 0.75 stands as key resistance.
Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart however, the pair maintains a neutral-to-bearish stance, as the price is now below a horizontal 20 SMA at 0.7390, whilst the technical indicators have turned lower around their mid-lines. "At this point however, the pair needs to break below the multi-year low set at 0.7327 last week", (which it just has!!) "...to confirm a new leg lower, eyeing then the 0.7200 level as the next big bearish target."