The Australian dollar made a recovery attempt during the Asian session and even ignored not so encouraging data.
However, a fresh shopping spree of US dollars sent the pair back down. Can it challenge the cycle lows?
The Aussie managed to recover from the blow early in the week and rise up to 0.8765, where it stayed for some time. The A$ ignored some poor data from both Australia and China:
Australian private credit expanded by 0.4% in September, the same as in August and below expectations of +0.5%. The final HSBC manufacturing PMI for China, Australia’s biggest trading partner, was revised to the downside to 50.2 points, reflecting very poor growth. It has originally shown 50.5 points.
Nevertheless, the Aussie held high in its own timezone but fared worse afterwards. A fresh wave of USD buying sent EUR/USD to a 2 year low and USD/JPY ever closer to 110. The Aussie lost ground eventually fell from the highs and hit support at 0.87, from where it stabilized.
The Australia dollar’s low so far was 0.8682, just above the previous low of 0.8660 which is critical support and low seen in February. Below this line, it’s probably all downhill.
More: Are the AUD and NZD currencies on path for more devaluation?
Share
