24 Jul 2013
AUD/USD testing lows again after lowest HSBC PMI China in years
FXstreet.com (Barcelona) - The AUD/USD foreign exchange rate is last trading near session lows at 0.9250, off recent session and fresh 4-week highs at 0.9320, following worst HSBC Fash Manufacturing PMI China data in years.
AUD/USD taking stops out at both sides
Following lower than expected Australia 2Q CPI at +0.4% vs +0.5%, the pair took a massive dive to session lows at 0.9235, to what it seems was a major longs squeeze, bouncing hard from there till mentioned session highs. Fifteen minutes later came in the worst HSBC PMI China seen in years at 47.7 vs 48.6 expected, taking the Aussie again to the depths of the session.
Reasoning behind first major squeeze was the CPI figure had not been as low as it could be, leading OIS interest rates futures pricing in a lower chance of cutting rates next month, from previous 60% to current 50%. But latest Chinese data pointing for further slow down has managed to make bears step in and rule current price action to recent 0.9251 quotes.
AUD/USD key technical levels
Immediate resistance to the upside for AUD/USD shows at June 11 lows at 0.9326, followed by June 26 highs at 0.9346. To the downside, closest support lies at mentioned session lows 0.9236, followed by yesterday's lows at 0.9221.
AUD/USD taking stops out at both sides
Following lower than expected Australia 2Q CPI at +0.4% vs +0.5%, the pair took a massive dive to session lows at 0.9235, to what it seems was a major longs squeeze, bouncing hard from there till mentioned session highs. Fifteen minutes later came in the worst HSBC PMI China seen in years at 47.7 vs 48.6 expected, taking the Aussie again to the depths of the session.
Reasoning behind first major squeeze was the CPI figure had not been as low as it could be, leading OIS interest rates futures pricing in a lower chance of cutting rates next month, from previous 60% to current 50%. But latest Chinese data pointing for further slow down has managed to make bears step in and rule current price action to recent 0.9251 quotes.
AUD/USD key technical levels
Immediate resistance to the upside for AUD/USD shows at June 11 lows at 0.9326, followed by June 26 highs at 0.9346. To the downside, closest support lies at mentioned session lows 0.9236, followed by yesterday's lows at 0.9221.