23 Jan 2014
AUD/USD in lows near 0.8780
FXstreet.com (Edinburgh) - The Aussie dollar is now trading in a narrow range, taking the AUD/USD back below the 0.8800 handle.
AUD/USD weaker on China
Poor manufacturing PMI print from the Chinese economy – below the 50 threshold in January – prompted a quick sell-off in the AUD, dragging the pair to test fresh session lows in the 0.8790/80 region and erasing most gains from the bull run to 0.8890 post-CPI figures. Regarding the Chinese data, analyst Flemming Nielsen at Danske Bank suggested, “The decline is overall consistent with our view that China’s growth was poised to slow in H1 14 on the back of tighter monetary conditions but the larger-than-expected decline in January nonetheless suggests increasing downside risk”.
AUD/USD levels to watch
As of writing the pair is down 0.73% at 0.8785 and a breach of 0.8775 (low Jan.21) would expose 0.8756 (low Jan.20) and then 0.8737 (low Jul.22 2010). On the flip side, the initial resistance lines up at 0.8889 (high Jan.22) ahead of 0.8915 (high Jan.16) and finally 0.8971 (high Jan.15).
AUD/USD weaker on China
Poor manufacturing PMI print from the Chinese economy – below the 50 threshold in January – prompted a quick sell-off in the AUD, dragging the pair to test fresh session lows in the 0.8790/80 region and erasing most gains from the bull run to 0.8890 post-CPI figures. Regarding the Chinese data, analyst Flemming Nielsen at Danske Bank suggested, “The decline is overall consistent with our view that China’s growth was poised to slow in H1 14 on the back of tighter monetary conditions but the larger-than-expected decline in January nonetheless suggests increasing downside risk”.
AUD/USD levels to watch
As of writing the pair is down 0.73% at 0.8785 and a breach of 0.8775 (low Jan.21) would expose 0.8756 (low Jan.20) and then 0.8737 (low Jul.22 2010). On the flip side, the initial resistance lines up at 0.8889 (high Jan.22) ahead of 0.8915 (high Jan.16) and finally 0.8971 (high Jan.15).