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23 Jan 2015
AUD/USD fragile despite decent Chinese data
FXStreet (Guatemala) - AUD/USD is currently trading at 0.8017 with a high of 0.8055 and low of 0.8002.
AUD/USD has been a chop around the 2 month high of the HSBC Flash China Manufacturing Purchasing Managers’ Index came at 49.8 in January, a 2-month high, against 49.6 expected and 49.6 in December. The pair has since, in time, started to develop a real convincing downside to despite the decent numbers. The Aussie is fragile and there are nerves around the RBA and what action they may take, in comparison to the BoC recent shock move.
Meanwhile, Karen Jones, chef analyst at Commerzbank explained that the market is capped by the 5 month downtrend, at 0.8236 and has eroded the 20 day ma thereby reasserting its down move. "While capped by the downtrend, the short term risk is for a slide to the recent low at .8034. There is scope for the long term double Fibonacci support at 0.7950/30. We note the 13 count on the weekly chart and this suggests that 0.7950/30 is likely to hold the initial test".
AUD/USD has been a chop around the 2 month high of the HSBC Flash China Manufacturing Purchasing Managers’ Index came at 49.8 in January, a 2-month high, against 49.6 expected and 49.6 in December. The pair has since, in time, started to develop a real convincing downside to despite the decent numbers. The Aussie is fragile and there are nerves around the RBA and what action they may take, in comparison to the BoC recent shock move.
Meanwhile, Karen Jones, chef analyst at Commerzbank explained that the market is capped by the 5 month downtrend, at 0.8236 and has eroded the 20 day ma thereby reasserting its down move. "While capped by the downtrend, the short term risk is for a slide to the recent low at .8034. There is scope for the long term double Fibonacci support at 0.7950/30. We note the 13 count on the weekly chart and this suggests that 0.7950/30 is likely to hold the initial test".