AUD/USD trying to stabilize near mid-0.6900s after early flash crash to almost a decade low

   “¢   Revenue warning from Apple fuels global growth concerns and add to the risk-averse mood.
   “¢   Thin liquidity conditions further exacerbated moves amid the global flight to safety.
   “¢   Cross-driven weakness might now keep a lid on any meaningful recovery attempt.  

The AUD/USD pair managed to recover a major part of its early flash crash to almost a decade low and now seems to have stabilized just below mid-0.6900s.

A rare revenue warning from Apple Inc. heightened worries about the global economy and pushed investors into perceived safe-haven currencies. This followed a slew of recent disappointment from Chinese macro data and further charged the prevalent risk-averse mood.

The global flight to safety boosted the US Dollar’s relative safe-haven status and prompted some aggressive selling around the China-proxy Australian Dollar. The move was further exacerbated by relatively thin liquidity conditions, with the pair collapsing almost 4% to its lowest level since March 2009.  

As the dust settled, the pair recovered around 180-pips from an intraday low level of 0.6771, albeit lacked any strong follow-through and remained capped below the 0.6950 region amid the prevalent risk-off and some cross-driven weakness stemming out of the AUD/JPY pair.

Moving ahead, today’s US economic docket, highlighting the release of ADP report on the private sector employment and ISM manufacturing PMI will now be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch