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    AUDUSD plummets to multi-year lows along with China PMI

    AUDUSD plummets to multi-year lows as Chinese PMI hits its lowest level since April 2014.

     



    Today's PMI data was yet another blow to the Australian Dollar, which was already feeling the pressure from weak commodity prices and a strong US Dollar. 

    The three forces combined are likely to see the Australian Dollar under pressure for the remainder of the week and neither the European nor US markets have had time to respond to this information yet. Therefor we can assume the Australian Dollar will begin tonight's session on the back foot. 

    For a brief moment it dropped below 73c to make an intraday (and multi-year low) at 0.7298, its lowest level since April 2009. At time of writing it appears poised to break below 73c and stay there. 

    Any weakness from China will have a detrimental effect on the Australian Economy, and speculators will continue push the currency down further as commodity prices, a strong Greenback and Chinese growth concerns all point towards a lower Aussie. 

    Technically the trend, on all timeframes, is clearly bearish and likely to attract further selling pressure upon any retracements. 73c is clearly a level to watch for any support but a clean break below could target 0.7285 and 0.7250.



     

     


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