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23 Apr 2015
AUD/USD: Supply on China woes is met by bulls 0.7717/35
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7730 with a high of 0.7756 and a low of 0.7717.
AUD/USD has dropped further on the back of the Chinese HSBC Manufacturing data at a twelve month low that also weighs on the Aussie at 49.2 vs 49.6 expected as well as the Australian business confidence that fell from 2 in Q4 2014 to 0 in Q1 2015, while business conditions were also lower at 2 in Q1 2015 from 5 in Q4 2014.
However, there comes support at the lows and also through the 0.77 handle should there be follow through with intraday Elliott wave counts that are more positive. Karen Jones, chief analyst at Commerzbank explained that provided dips are contained today by 0.7675/65, they would allow for further upside probes.
On an extension of the downside however, the analyst team at Commerzbank explained, "Below 0.7534 lies the two month support line at 0.7488. Once it has given way, the October 2006 low at 0.7416 will be in focus, followed by the 0.7369 July 2005 low. Longer term the 61.8% Fibonacci retracement of the 2001-11 advance at 0.7180 could also be reached."
AUD/USD has dropped further on the back of the Chinese HSBC Manufacturing data at a twelve month low that also weighs on the Aussie at 49.2 vs 49.6 expected as well as the Australian business confidence that fell from 2 in Q4 2014 to 0 in Q1 2015, while business conditions were also lower at 2 in Q1 2015 from 5 in Q4 2014.
However, there comes support at the lows and also through the 0.77 handle should there be follow through with intraday Elliott wave counts that are more positive. Karen Jones, chief analyst at Commerzbank explained that provided dips are contained today by 0.7675/65, they would allow for further upside probes.
On an extension of the downside however, the analyst team at Commerzbank explained, "Below 0.7534 lies the two month support line at 0.7488. Once it has given way, the October 2006 low at 0.7416 will be in focus, followed by the 0.7369 July 2005 low. Longer term the 61.8% Fibonacci retracement of the 2001-11 advance at 0.7180 could also be reached."