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4 Mar 2013
Forex: AUD/USD weak below 1.02 post worst China non-manufacturing PMI in 5 months
With Iron ore barely above the $150/tone mark, around 1-month lows, and USD index above the 82.2, 6-month highs, AUD/USD opens the week slightly to the downside, last at 1.0197 bids, off fresh Friday's 4-month lows at 1.0180, on the back of a stronger USD across the board. China non-manufacturing PMI came in during the weekend, showing lowest result in 5 months at 54.5, when previous was 56.2.
“AUD/USD had another run below 1.0200 but more Sovereign buyers and barrier protection ahead of 1.0150 ensured a late bout of short-covering on Friday,” said FXWW founder Sean Lee, adding: “The short-term trend is bearish but selling rallies is preferred to selling weakness in a medium-term range-trading market. The possibility of a short-term double-bottom at 1.0180 might also unnerve the bears,” he suggests.
Immediate support to the downside for AUD/USD lies at mentioned double Friday/Wednesday lows 1.0180, followed by Sept 05/06 lows at 1.0162/3, and Oct 08 lows at 1.0145. To the upside, closest resistance shows at weekly opening price and Friday's session lows 1.0250, followed by Friday's highs at 1.0241, and Feb 25 lows at 1.0250.
“AUD/USD had another run below 1.0200 but more Sovereign buyers and barrier protection ahead of 1.0150 ensured a late bout of short-covering on Friday,” said FXWW founder Sean Lee, adding: “The short-term trend is bearish but selling rallies is preferred to selling weakness in a medium-term range-trading market. The possibility of a short-term double-bottom at 1.0180 might also unnerve the bears,” he suggests.
Immediate support to the downside for AUD/USD lies at mentioned double Friday/Wednesday lows 1.0180, followed by Sept 05/06 lows at 1.0162/3, and Oct 08 lows at 1.0145. To the upside, closest resistance shows at weekly opening price and Friday's session lows 1.0250, followed by Friday's highs at 1.0241, and Feb 25 lows at 1.0250.