22 Aug 2013
AUD/USD jumps on Chinese PMI data. Will it last?
FXstreet.com (Barcelona) - The AUD/USD has reacted bullishly to the better-than-expected Chinese PMI data but is showing some selling pressure at just above 0.8980.
AUD/USD has to follow through on upside after this data or major selling may follow
The Chinese PMI data came in well above expectations at 50.1 vs. 48.3 expectations and vs. 47.7 the previous month. A number like that should give anything levered to China a big-time boost – and one that should “stick”. If the AUD/USD fails to follow through on the initial post-data pop, you can be sure the bears will come at AUD/USD with renewed vigor.
On the other hand, some follow through to the upside in AUD/USD may be enough to put the squeeze on the shorts in a big way. So, the action in the hours to come will be critical in terms of determining the direction of the next big move.
Technical outlook for AUD/USD
The AUD/USD cross broke down below short-term correction support Wednesday and accelerated to the downside – even reaching the next Fibonacci projection at 0.8956. The next short-term support comes in at 0.8918 – another Fibonacci projection. Resistance for any short-term rally will come in at 0.9058 and is backed up by 0.9110 (the 8/13 close).
AUD/USD has to follow through on upside after this data or major selling may follow
The Chinese PMI data came in well above expectations at 50.1 vs. 48.3 expectations and vs. 47.7 the previous month. A number like that should give anything levered to China a big-time boost – and one that should “stick”. If the AUD/USD fails to follow through on the initial post-data pop, you can be sure the bears will come at AUD/USD with renewed vigor.
On the other hand, some follow through to the upside in AUD/USD may be enough to put the squeeze on the shorts in a big way. So, the action in the hours to come will be critical in terms of determining the direction of the next big move.
Technical outlook for AUD/USD
The AUD/USD cross broke down below short-term correction support Wednesday and accelerated to the downside – even reaching the next Fibonacci projection at 0.8956. The next short-term support comes in at 0.8918 – another Fibonacci projection. Resistance for any short-term rally will come in at 0.9058 and is backed up by 0.9110 (the 8/13 close).