FX News – July 24: AUD & JPY Fall on Weak Chinese PMI

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The AUD/USD briefly breached the 0.9300 level today, but once again failed to sustain it after weak economic news came out of China. The China HSBC PMI hit an 11-month low at 47.7 today from the previous 48.2. Analysts expected it to rise slightly to 48.5.

The pair is currently trading at 0.9265, with initial resistance at 0.9339, followed by 0.9362. Meanwhile, initial support is at 0.9259, followed by 0.9235.

It wasn't just the AUD/USD that was affected by the weak Chinese PMI data. The EUR/USD also slid slightly early in the Asian session because of it. From a high of 1.3226, it fell to a low of 1.3198 moments after the release of the data from China. It is currently on its way to a recovery as it is trading just below the 1.3210 level. 

Initial resistance for the EUR/USD is at 1.3270, followed by 1.3303. Meanwhile, initial support is at 1.3193, followed by 1.3160.

The aussie also fell against the euro, as the EUR/AUD pair went up from today's low of 1.4185 to today's current high at just below the 1.4270 level.

Initial resistance for the pair is at 1.4261, followed by 1.4297. Meanwhile, initial support is at 1.4178 followed by 1.4143.

The strong greenback also pulled down the yen early in today's trading. After opening at 99.50, the USD/JPY pair has risen steadily over the past few hours. It reached a high of 99.76 before sliding down to the current 99.68.

Initial resistance for the pair is at 99.81, followed by 100.06. Meanwhile, initial support is at 98.75, followed by 98.75.

As for today's events calendar, there will be a number of announcements coming from the Eurozone, including Germany's manufacturing and services PMI, the EU's manufacturing and services PMI, new home sales from the US, and the interest rate decision from New Zealand at 9:00PM GMT.

By FX Strategy Team, Published on 24th of July 2013
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