AUD/USD breaks below 0.72 handle, dip till 0.7085 likely
AUD/USD fades upside post RBA, extends weakness below 0.72 handle.
Wider AU-US spreads, disappointing China PMI data, goodish pickup in the US Dollar demand, coupled with a mildly weaker tone around copper prices exerting some additional downward pressure.
Major trend in the pair remains bearish and recovery attempts were rejected at 55-EMA.
Break below 0.72 handle raises scope for weakness. Scope then for test of 0.7085 (Sept 11 low).
Focus now on Fed Chair Jerome Powell's scheduled speech later during the US trading session.
Good to stay short on upticks, SL: 0.7285, TP: 0.7145/ 0.71/ 0.7085
Wider AU-US spreads, disappointing China PMI data, goodish pickup in the US Dollar demand, coupled with a mildly weaker tone around copper prices exerting some additional downward pressure.
Major trend in the pair remains bearish and recovery attempts were rejected at 55-EMA.
Break below 0.72 handle raises scope for weakness. Scope then for test of 0.7085 (Sept 11 low).
Focus now on Fed Chair Jerome Powell's scheduled speech later during the US trading session.
Good to stay short on upticks, SL: 0.7285, TP: 0.7145/ 0.71/ 0.7085
Comment:
TP1 hit.
Comment:
All targets hit.
Focus now on US ADP employment change and the ISM non-manufacturing number due later in the NY session.
Upbeat numbers can send the treasury yields higher, supporting the US dollar and weighing further on the pair.