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AUD/USD Rebounds to 0.7045 as Wall Street Gains 1%

The Australian Dollar rebounds in the NY session to 0.7045 from 0.6980 after having fallen steadily over the past two days primarilly on the sucessive sharp declines of the Shanghai stocks pushing major indices down almost 3 percent yesterday, with concerns on China's slowing economy and a lower reading of manufacturing PMI.

The Aussie received a second wave of bearish news following the lower-than-expected 2nd QTR GDP which missed estimates and fell to the support line of 0.6980. However, the Chinese central bank, PBOC interevened in the stock market to pump cash and liquidity into the banking system and brokerage houses. China stocks pared losses in a cautious and wobbly Asian session.

As the US dollar gained in the European session, the aussie was pushed lower once again to the well supported level of 0.6980. The aussie rebounds in the NY session to 0.7045 from 0.680 ( 65 points) as Wall Street gains 1%. Traders see the stocks rebound more on volatility and nervousness rather than a typical recovery trend, expect more volatility until October.

Support: 0.6010 long term. 0.6805 medium term. 0.6970 intraday.

Resistance: 0.7050 intraday. 0.7245 medium term. 0.7380-0.7400 long term.

AUDUSD.9.2.2015 resized 600 

Chart: WorldWideMarkets Alpha Trader

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