AUDUSD Hits 7 Month Lows

AUDUSD hits 7 month low and trades 0.03 percent lower at 0.6842 after Australia Commonwealth Bank Manufacturing PMI came in at 51.6 topping forecasts of 51.4 in July the AiG Performance of Mfg Index rose from previous 49.4 to 51.3 in July. The Australia Import Price Index (QoQ) came in at 0.9%, above expectations (-1.4%) in 2Q, while Export Price Index (QoQ) registered at 3.8% above expectations (0.1%) in 2Q. The China Caixin Manufacturing PMI came in at 49.9, topping expectations of 49.6 in July,

Federal Reserve delivered a 25bp interest rate cut as widely expected, and left the door open for more rate cuts. The previous week  Governor Lowe of Reserve Bank of Australia in a speech said that it’s reasonable’ to expect lower rates for longer time and RBA is prepared to ease policy further if needed.

AUDUSD managed to rebound from the daily low at 0.6827 while already running nine consecutive negative sessions. On the downside first support now stands at 0.6827 the today’s low, a level that if breached will enhance the slide toward the 0.68 round figure. On the upside immediate resistance stands at 0.6874 the 50 hour moving average while more offers will emerge at 0.6893 the 100 hour moving average. The short term momentum for AUDUSD is bearish for now and a move to lower levels looks possible; the RSI in the daily chart stands at 32 and is approaching oversold levels that might trigger a rebound.Don’t miss a beat! Follow us on Twitter.