AUD Trading Outlook
Australian Dollar (AUD) the Aussie was hammered lower immediately after the weak Chinese HSBC PMI slumped to 9 month lows at 47.3 in August. The selling continued in Europe and the US sessions with the China bear story now undermining the AUD support base.
Australian Dollar (AUD) had very volatile trade with weakness in the Asian/European session on Chinese slowdown fears led to the market being caught short by the Dovish FOMC minutes. We soared above 1.0500 and had a large stop hunt in the early Thursday Asian session breaking to two week highs above 1.0530. The August HSBC Chinese PMI halted the rally however coming in very weak at 47.8 vs. 49.3 previously.
Australian Dollar (AUD) was volatile rallying up to 1.0520 before reversing with the US stocks and ending on a weak footing. So far in Asia the selling has continued and accelerated as BHP the world’s largest miner cut profit forecasts and halted expansion on falling Chinese demand. Looking ahead, main event risk this week for Asia is Thursday’s HSBC China PMI release.
Australian Dollar (AUD) had a slightly positive day rising up to 1.0470 before consolidating in quiet trade. The heavy selling on Friday has spooked the bulls and we could struggle to get back above 1.0500 in the current environment waiting for fresh direction. AUD/JPY is stalling at Y83 but is still well supported for now. Looking ahead, RBA Meeting minutes from the August meeting.
Australian Dollar (AUD) the AUD/USD finally broke to the downside in a rare move on a strong stock market day. The main story is that the crosses are under pressure with EUR/AUD and GBP/AUD surging higher after months of downtrend. Some suggest that the China bear story is gaining traction and that this could take the wind out of the Aussie going forward. Looking ahead, no economic data.
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