Opened in Asia at $1.0459 after another mauling in Europe and NY yesterday which saw the pair fall from $1.0528 to $1.0421 on China concerns and Pimco forecasts of large falls in GBP, EUR and AUD. AUD received an early lift in Asia this morning on talk of a large Toshin issuance next week, together with optimism over the impending Chinese Flash PMI helping the pair to $1.0484. The release was a big disappointment coming in at 48.1 from 49.6 in Feb which reignited AUD bears and led a collapse through the $1.4010/20 support, tripping stops under the 200 day MA at $1.0402 to lows of $1.0376. The move stalled just ahead of the 100 day MA at $1.0373 and the cloud base around $1.0354 but AUD remains under pressure with bounces so far fizzling out in the $1.0410/15 zone. Aussie-yen continues to be driven lower with a combination of the PMI data and a surprise surplus in Japanese trade leading the cross sharply down from Y87.40 to Y86.37, before a recovery to Y86.82. EUR/AUD looks to have finally broken higher extending to A$1.2740 from early session lows of A$1.2632.
EasyForexNews Research Team