Chart: WorldWideMarkets Alpha Trader
In the prior Asian session, the preliminary Purchasing Managers' Index from HSBC and Markit Economics posted a 3 month-low reading of 50.3 in August, which was lower than the median forecast of 51.5, while the index fell from 51.7 in July. The decline in the Chinese Manufacturing index precipitated from a slowing credit expansion and growth in the investment spending in July.
The Australian Dollar fell from 0.9226 tp 0.9235 following the weak Chinese data. However, market participants took the opportunity to buy the aussie which was well supported at 0.9240. Further shortcovering pushed the aussie to 0.9280 in Europe. (8:30am GMT)
The 14-day moving average shows good support at 0.9247 on the 10-minute chart. The Fibonacci arc 50% retracement at 0.9280 has been met. There is a small chance to rebound to the 61.8% level of 0.9293 today on a shortcovering move. However, rebounds might be limited since the aussie has declined 110 points from Tuesday's high of 0.9345.
Support: 0.9240, 0.9225, 0.9215, 0.9200 (May 5 Low)
Resistance: 0.9293, 0.9307, 0.9315, 0.9350, 0.9370