25 Jun 2013
AUD/USD at session lows as hell breaks loose in Shangai index
FXstreet.com (Barcelona) - The AUD/USD has had a wild turnaround in the last hour of trading, moving from 0.9267 session high to now make new lows in Asia at 0.9215.
Shangai SEC weighs down the Aussie
The Shangai Stock Exchange Composite is down over 3% 2 hours into the trading, and that alone is having a broad negative impact on the Australian Dollar and risk sentiment. Further indications that the PBoC does not intend to loosen policy anytime soon, is a major stepping stone to overcome within traders mentality. Fears is mounting that tightness by the Chinese central bank will only worsen the credit crunch and subsequently, worsen the growth outlook in the Middle Kingdom.
AUD/USD technicals deteriorate again
The loss of 0.9240/50 by the AUD/USD all heel broke loose, with the rate accelerating its decline towards 0.9215, new lows made as the report is written. The next level of support is expected to be found at 0.92 round number, which converges with the 50% fib retrac from the latest 0.9140-0.9300 run-up, with a break below exposing 0.9165 support. On the upside, only a break and hold back above 0.9250 may ease the selling pressure.
Shangai SEC weighs down the Aussie
The Shangai Stock Exchange Composite is down over 3% 2 hours into the trading, and that alone is having a broad negative impact on the Australian Dollar and risk sentiment. Further indications that the PBoC does not intend to loosen policy anytime soon, is a major stepping stone to overcome within traders mentality. Fears is mounting that tightness by the Chinese central bank will only worsen the credit crunch and subsequently, worsen the growth outlook in the Middle Kingdom.
AUD/USD technicals deteriorate again
The loss of 0.9240/50 by the AUD/USD all heel broke loose, with the rate accelerating its decline towards 0.9215, new lows made as the report is written. The next level of support is expected to be found at 0.92 round number, which converges with the 50% fib retrac from the latest 0.9140-0.9300 run-up, with a break below exposing 0.9165 support. On the upside, only a break and hold back above 0.9250 may ease the selling pressure.