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21 Aug 2015
AUD/JPY: Bear breakout through 90.00 allows deeper targets
FXStreet (Bali) - The latest Chinese PMI data, which has come at a whopping 6 1/2 year low, has only exacerbated the sense of risk-aversion currently settled in global markets.
AUD knocked down by terrible Chinese data, risk-aversion
While the Australian Dollar had been depreciating on the lead-up to the event, as Chinese stocks opened -1.5% lower, the data has knocked down the Antipodean currency an additional 40 pips or thereabouts, breaking through the major psychological barrier at 90.00. Yen longs, which were always playing from a position of strength, have been able to capitalize on the ongoing risk-off conditions.
AUD/JPY technicals: Break of 90.00 allows new downside ambitions
The break below 90.00 looks quite stretched, after a one-way sharp fall off 90.60/70 since the start of Asia, suggesting that while some profit-taking may now be due, any rebound should be seen as selling opportunities at value-areas, the first one coming at 90.25/30 - last swing low - ahead of 90.50 mid round number and highest volume node of the day -. On the downside, an acceleration of the bear trend now exposes 89.30/40 low ahead of further falls to wards 88.20/30.
AUD knocked down by terrible Chinese data, risk-aversion
While the Australian Dollar had been depreciating on the lead-up to the event, as Chinese stocks opened -1.5% lower, the data has knocked down the Antipodean currency an additional 40 pips or thereabouts, breaking through the major psychological barrier at 90.00. Yen longs, which were always playing from a position of strength, have been able to capitalize on the ongoing risk-off conditions.
AUD/JPY technicals: Break of 90.00 allows new downside ambitions
The break below 90.00 looks quite stretched, after a one-way sharp fall off 90.60/70 since the start of Asia, suggesting that while some profit-taking may now be due, any rebound should be seen as selling opportunities at value-areas, the first one coming at 90.25/30 - last swing low - ahead of 90.50 mid round number and highest volume node of the day -. On the downside, an acceleration of the bear trend now exposes 89.30/40 low ahead of further falls to wards 88.20/30.