2013-05-23 06:27 GMT
The Aussie dollar continues its relentless march south on Thursday, threatening to breach the key support at 0.9600.
The flash manufacturing PMI gauged by HSBC in the Chinese economy contracted below the key 50 threshold in May. The print disappointed investors, coming in at 49.6 vs. 50.5 expected and 50.4 in the previous month, adding to the ongoing bearishness around the AUD. ”This index has fallen since 51.6 in March, pointing to ongoing challenges in China’s manufacturing sector amidst lukewarm global demand conditions and weaker competitiveness through past years that results from domestic wage rises and the stronger currency vs the US dollar”, commented Adrian Foster, analyst at Rabobank.
The pair is now losing 0.83% at 0.9618 with the next support at 0.9580 (2012 low) followed by 0.9388 (2011 low) and then 0.9381 (high Apr.2010).
On the flip side, a breakout of 0.9664 (low Nov.2009) would bring 0.9690 (low May.23 2012) and finally 0.9877 (MA200w). – FXstreet.com (Barcelona)