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23 Apr 2013
Forex: AUD/JPY edging lower post HSBC China PMI data
FXstreet.com (Barcelona) - The AUD/JPY is leaking lower during the Asia session, down 57 pips at 101.24. The pair was initially trading near 101.80 early in the session, but quickly sold off towards 101.30 after the HSBC China PMI data came in under expectations.
According to William Schumaker of FXBriefs, “The PMI result very disappointing and adds to the growing concerns over China’s economic outlook. A PMI reading above 50.0 indicates expansion. After months of incremental improvement, weakness sets in and expect AUD to suffer as a result.”
Although the closing price of the day will be the most important, AUD/JPY has broken the short term uptrend support line of 101.70 which connecting the lows in four of the last five sessions. The next level to keep an eye on will be 100.97 (the 20dma). A move below here could lead to further selling down near 0.9980 (previous resistance, now support on daily chart). First resistance comes in at 101.70 (previous uptrend support, now resistance), followed by 102.00 (the 9 dma).
According to William Schumaker of FXBriefs, “The PMI result very disappointing and adds to the growing concerns over China’s economic outlook. A PMI reading above 50.0 indicates expansion. After months of incremental improvement, weakness sets in and expect AUD to suffer as a result.”
Although the closing price of the day will be the most important, AUD/JPY has broken the short term uptrend support line of 101.70 which connecting the lows in four of the last five sessions. The next level to keep an eye on will be 100.97 (the 20dma). A move below here could lead to further selling down near 0.9980 (previous resistance, now support on daily chart). First resistance comes in at 101.70 (previous uptrend support, now resistance), followed by 102.00 (the 9 dma).