Back
20 Feb 2014
China HSBC next: Impact on AUD/USD
FXStreet (Bali) - Ahead of the China's HSBC PMI, the AUD/USD is trading with a heavy tone, barely holding above the 0.8990/0.90 area. Expectations are for a 49.40 readings, however, the forecast has proven quite accurate in recent releases, thus why should take the number with a grain of salt.
What to expect?
Matt Simpson, a senior analyst with ThinkForex trades Forex, notes: "Take note that today's consensus is below January's actual, which was also less than expected. So the consensus has shifted somewhat to the negative side, which may already be factored into any subsequent price movements at tomorrow's release."
AUD/USD potential reaction
Above 50: AUD/USD will most likely be headed towards 0.9040 resistance, where a battle between buyers and sellers will take place. A break above exposes 0.9080 again, however, unless a major shocker (above 50.5/51.00), sellers should remain quite committed to defend the upside.
Below 49.40: AUD/USD will probably target the 0.8920/30 area, which means it has an attractive potential run. A major missing (below 48.5) and one may expect the effect of longs bailing/sellers jumping in, to have a serious go towards levels beyond 0.8920 as Europe comes online.
Between 49.40-50: A reading withing consensus parameters will see the AUD/USD chopping around, with risks skewed to the downside as move will likely be determined by technicals, which suggests heavy pressure after a double topside failure at 0.9040 intraday this week.
What to expect?
Matt Simpson, a senior analyst with ThinkForex trades Forex, notes: "Take note that today's consensus is below January's actual, which was also less than expected. So the consensus has shifted somewhat to the negative side, which may already be factored into any subsequent price movements at tomorrow's release."
AUD/USD potential reaction
Above 50: AUD/USD will most likely be headed towards 0.9040 resistance, where a battle between buyers and sellers will take place. A break above exposes 0.9080 again, however, unless a major shocker (above 50.5/51.00), sellers should remain quite committed to defend the upside.
Below 49.40: AUD/USD will probably target the 0.8920/30 area, which means it has an attractive potential run. A major missing (below 48.5) and one may expect the effect of longs bailing/sellers jumping in, to have a serious go towards levels beyond 0.8920 as Europe comes online.
Between 49.40-50: A reading withing consensus parameters will see the AUD/USD chopping around, with risks skewed to the downside as move will likely be determined by technicals, which suggests heavy pressure after a double topside failure at 0.9040 intraday this week.