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20 Jun 2013
AUD/USD resumes downtrend post HSBC China PMI
FXstreet.com (Barcelona) - The AUD/USD, after an early push to correct oversold conditions, is now resuming its fall to new lower ground, lowest so far at 0.9240, following a weaker-than-expected HSBC China Manufacturing PMI.
HSBC China Manufacturing PMI disappoints
The data out of China, which comes at a time of a worrying cash crunch for the Big Panda, was 1 point below the 49.2 last reading.
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC said:
“The HSBC China Flash Manufacturing PMI dropped to a nine-month low of 48.3 in June, following on the sequential reduction in both production and demand. Manufacturing sectors are weighed down by deteriorating external demand, moderating domestic demand and rising destocking pressures. Beijing prefers to use reforms rather than stimulus to sustain growth. While reforms can boost long-term growth prospects, they will have a limited impact in the short term. As such we expect slightly weaker growth in 2Q.”
Technical levels in the AUD/USD
The recent fall in the AUD/USD, for some FXstreet.com contributors like FXWW Founder Sean Lee, is largely overdone. However, it has also prompted other technical commentators like Tim Riddell, Head of Global Markets Research at ANZ, to highlight the potential for deeper declines to 0.9140-0.9200 or even 0.9050-60.
In the very short term, as pointed earlier, next strong support comes at 0.9220 - Sept 2010 high/61.8% fib from 0.81-1.10 run - , while on the upside, 0.9325/30 may see offers return, ahead of 0.94 up to 0.9430 - June lows -.
HSBC China Manufacturing PMI disappoints
The data out of China, which comes at a time of a worrying cash crunch for the Big Panda, was 1 point below the 49.2 last reading.
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC said:
“The HSBC China Flash Manufacturing PMI dropped to a nine-month low of 48.3 in June, following on the sequential reduction in both production and demand. Manufacturing sectors are weighed down by deteriorating external demand, moderating domestic demand and rising destocking pressures. Beijing prefers to use reforms rather than stimulus to sustain growth. While reforms can boost long-term growth prospects, they will have a limited impact in the short term. As such we expect slightly weaker growth in 2Q.”
Technical levels in the AUD/USD
The recent fall in the AUD/USD, for some FXstreet.com contributors like FXWW Founder Sean Lee, is largely overdone. However, it has also prompted other technical commentators like Tim Riddell, Head of Global Markets Research at ANZ, to highlight the potential for deeper declines to 0.9140-0.9200 or even 0.9050-60.
In the very short term, as pointed earlier, next strong support comes at 0.9220 - Sept 2010 high/61.8% fib from 0.81-1.10 run - , while on the upside, 0.9325/30 may see offers return, ahead of 0.94 up to 0.9430 - June lows -.