30 Jan 2014
AUD/USD breaks key 0.8720/25 support post HSBC China PMI
FXstreet.com (Bali) - AUD/USD is trading under pressure after a soft China HSBC/Markit manufacturing PMI for January - final reading -, which came at 49.5 vs expected 49.6.
The pair broke an important level of support at 0.8725, holding in two occasions during the stampede of selling hitting the Aussie. According to Valeria Bednarik, Chief Analyst at FXStreet: "A downward acceleration below 0.8720 support confirmS more slides ahead."
Traders should be reminded that the Australian Dollar has been extremely sensitive to any set-back in Chinese data recently. The latest evidence is that a miss of 0.1 bp from the 40.6 expected has caused the pair to tumble more than 20 pips, breaking support with little challenges.
The pair broke an important level of support at 0.8725, holding in two occasions during the stampede of selling hitting the Aussie. According to Valeria Bednarik, Chief Analyst at FXStreet: "A downward acceleration below 0.8720 support confirmS more slides ahead."
Traders should be reminded that the Australian Dollar has been extremely sensitive to any set-back in Chinese data recently. The latest evidence is that a miss of 0.1 bp from the 40.6 expected has caused the pair to tumble more than 20 pips, breaking support with little challenges.