AUD/USD dips below 0.9250 on weak Chinese PMI

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The Australian dollar showed some resilience in the wake of the not-too-dovish FOMC meeting minutes, while other currencies surrendered to the greenback’s strength. Not anymore.

A Chinese data knocked the Aussie down. Is it joining the pack or can it recover?

HSBC and Markit released their preliminary manufacturing PMI for China and it certainly disappointed: the figure fell from 51.7 to 50.3 points, well below 51.5 points expected and too close to the 50 point mark that separates growth from contraction. China is Australia’s No. 1 trading partner and this independent indicator triggers worries about slower growth and thus weaker demand for Australian commodities.

The dip below 0.9250 reflects the lowest levels since June. The round 0.92 level that supported the pair back in May is critical support from here. 0.9140 follows. On the upside, 0.9340 is the recent top of the range.

Here is how it looks on the chart:

AUDUSD August 21 2014 falling on Chinese data chart for currency analysis

For more, see the AUDUSD prediction.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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