There is no mercy for the Australian dollar. AUD/USD is now trading just above 0.89, continuing the slide that it suffered from last week. Chinese stimulus gave the A$ a shot in the arm, but this faded away quite quickly as the US dollar rallied following the Fed decision. Late in the week, the trend intensified and the pair closed around 0.8920.
The downtrend resumed in the wake of the new week, and again Chiina is in the limelight: the preliminary Chinese HSBC manufacturing PMI is eyed: it is an independent measure of the health of the world’s No. 2 economy, Australia’s No. 1 trade partner. A figure of 50, showing no growth prospects is expected.
If the tentative break below 0.8910 is confirmed, the next level of support appears only at 0.8820. Resistance is at the round and clear separator of 0.90, followed by 0.91. For more, see the Australian dollar forecast.
