Forex: AUD/USD prints lower lows on bad Chinese data

Much lower than expected HSBC manufacturing PMI China at 50.5 vs 52.2 expected and 52.3 for previous month, has pushed Aussie to fresh session and weekly lows at 1.0265, down so far -0.54% from previous weekly close Friday.

Initial comments on a WSJ article over the weekend warning on hidden risks of a hard landing in Chinese economy also put pressure to the downside in the pair, breaking below the 1.03 mark in early Asia-Pacific trade.

Immediate support to the downside for AUD/USD lies at current levels as Thursday's highs around 1.0260, followed by Feb 12/21 lows at 1.0226/20, and Sept 06 lows at 1.0160. To the upside, closest resistance shows at previous session lows 1.0278, followed by Friday's NY session lows at 1.0295, and previous weekly close at 1.0320.

Feb 25, 2013

HSBC PMI in China surprises to the downside

HSBC Manufacturing PMI in China for the month of February has surprisingly weakened to 50.4 vs. 52.2 expected and 52.3 last print in January. After months of upward adjustments, investors will star to wonder whether this is a one-off event due to new year seasonality effects or there is some substance behind. The Aussie is lower on the news.

Forex Flash: Japan's Kuroda headlines only confirms expectations - Societe Generale

The head of the Asian Development Bank, Mr. Kuroda, which was placed as the most likely candidate by Nomura last week, "only confirms market expectations" says Sebastien Galy, currency strategist at Societe Generale. He adds that while JPY shorts have held well, "the