Chart: WorldWideMarkets Alpha Trader
The Australian Dollar continued to slide in Europe and fell from 0.9205 to 0.9158 (-47 pips). The weakness of the Aussie was still prevalent from the dovish remarks yesterday of the RBA Governor Glenn Stevens who had mentioned that he was open minded on FX intervention to lower the Australian Dollar. After the comments of Stevens, the Aussie fell from 0.9290 to 0.9210 at 2:25pm in Sydney.
China’s manufacturing activity slowdown and trade has also continued to weigh on the Aussie. The HSBC Flash manufacturing PMI released yesterday, was lower than expected at 50.4 versus 50.9 in October. Australia’s mining company, BHP Billition Ltd. said that China’s manufacturing slowdown also affected their revenue growth. China accounts for about 30% of their revenue.
Option barrier at 0.9150 which if broken, may lead to the next bear target of 0.9115 (low from Sept 5).
Support: 0.9115, 0.9038, 0.8973
Resistance: 0.9249, 0.9335, 0.9448