25 Aug 2015
AUD/USD testing on a minor recovery to key level
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7148 with a high of 0.7162 and a low of 0.7128.
AUD/USD attempting a recovery
AUD/USD is drifting to the downside in the aftermath of black Monday where the pair witnessed mayhem throughout global markets. We kicked off Asia yesterday with bog volatility and this extended through the European and US sessions, taking the major on a ride between 0.7030 and 0.7250. The commodity currencies got the brunt of it as in association to the commodity sector that is suffering at the loss of China's appetite.
We now await the open of the Chinese equity markets again and whether the PBoC are any closer to what is desperately required and expected of them, which is to stabilise matters with yet further easing via another RRR cut. This was anticipated after China's worst manufacturing PMI since the financial crisis by the markets, and given the no show of hand by the PBoC, the markets went berserk and will likely remain so until the Bank intervene with a fortified plan to rescue the economy from and outright crash and burn scenario.
AUD/USD 0.7000 remains exposed
The 14 year uptrend and base of the two-year channel at .7180/60 was taken out to the downside, although replenished on a bounce back to current resistance and prevailing spot, but this has now exposed 0.7016 March 2006 low. Should this give way and 0.7000 is penetrated with closes, then the 2004 June low of 0.6772 is exposed.
AUD/USD attempting a recovery
AUD/USD is drifting to the downside in the aftermath of black Monday where the pair witnessed mayhem throughout global markets. We kicked off Asia yesterday with bog volatility and this extended through the European and US sessions, taking the major on a ride between 0.7030 and 0.7250. The commodity currencies got the brunt of it as in association to the commodity sector that is suffering at the loss of China's appetite.
We now await the open of the Chinese equity markets again and whether the PBoC are any closer to what is desperately required and expected of them, which is to stabilise matters with yet further easing via another RRR cut. This was anticipated after China's worst manufacturing PMI since the financial crisis by the markets, and given the no show of hand by the PBoC, the markets went berserk and will likely remain so until the Bank intervene with a fortified plan to rescue the economy from and outright crash and burn scenario.
AUD/USD 0.7000 remains exposed
The 14 year uptrend and base of the two-year channel at .7180/60 was taken out to the downside, although replenished on a bounce back to current resistance and prevailing spot, but this has now exposed 0.7016 March 2006 low. Should this give way and 0.7000 is penetrated with closes, then the 2004 June low of 0.6772 is exposed.