FXStreet (Guatemala) – AUD/USD dumps on China to new 2016 lows. AUD/USD dumped in risk-off after the sharp devaluation in the Yuan by the PBoC today.
There was a floor in the sell off as China stocks opened higher by 01.% However, the price was already in a bearish wave with the Aussie in big supply as commodity markets took a hit and China entered a new crisis to start the year off. The price went from about 0.7170 to 0.7130 the lows scored before the Caixin Services PMI.
Caixin services are not usually a market moving event, but considering the poor performance of the manufacturing sector, China needs to focus on the consumers and domestic growth and service sis one way to balance it out. The results were 50.2 and down from previous 51.2. Composite was also down 49.5 vs 50.5 prior. So more downside to be expected and no respite for the Aussie here. New lows at time of writing are 0.7122.
AUD/USD downside levels
Technical readings point to the 4 month uptrend at 0.7115 first stop ahead of the 0.7098 recent low. This all guards the 0.7017 November low and the September low at 0.6940.
(Market News Provided by FXstreet)