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24 Aug 2015
AUD/USD breaks key 0.7285, risk-off empowers bears
FXStreet (Bali) - AUD/USD remains under extreme supply pressure as the risk-aversion conditions worsen in the early going of Asian trade, currently breaking through 0.7285, with the S&P500 futures down by over 0.7% in the open (-0.93% now), following sharp losses last Friday.
China main concern
AUD remains threatened by ample supply as fears of a Chinese slow down remain very palpable, with the latest China's Caixin flash PMI for August coming at a shocking 6 1/2 year low at 47.11 last week from 47.8 in July and 48.2 expected. Even more surprising was the fact, as Nomura Asian Economics Team points out, that it fell "against a historical average rise of 0.5pp from July to August over 2010-14", strengthening the notion of trouble ahead in China.
AUD/USD technicals
According to Valeria Bednarik, Chief Analyst at FXStreet: "In the 4 hours chart, the price stands below a mild-bearish 20 SMA, whilst the technical lack clear directional strength. The pair has bounced a couple of times from the 0.7285 level, so it will take a clear break below it (occurring now) to confirm additional declines towards the 0.7215 region, this August low."
China main concern
AUD remains threatened by ample supply as fears of a Chinese slow down remain very palpable, with the latest China's Caixin flash PMI for August coming at a shocking 6 1/2 year low at 47.11 last week from 47.8 in July and 48.2 expected. Even more surprising was the fact, as Nomura Asian Economics Team points out, that it fell "against a historical average rise of 0.5pp from July to August over 2010-14", strengthening the notion of trouble ahead in China.
AUD/USD technicals
According to Valeria Bednarik, Chief Analyst at FXStreet: "In the 4 hours chart, the price stands below a mild-bearish 20 SMA, whilst the technical lack clear directional strength. The pair has bounced a couple of times from the 0.7285 level, so it will take a clear break below it (occurring now) to confirm additional declines towards the 0.7215 region, this August low."