AUD/NZD: Bears tighten grip on China miss, drops to 1.1220

By FXStreet FXStreet (Mumbai) – Both the Antipodean currencies took a hit following the release of below estimates China PMI report, although the impact felt on the Australian dollar was far greater than its OZ neighbour.

AUD/NZD falls from 1.1250

Currently, the AUD/NZD pair trades -0.32% lower at 1.1227, hovering close to fresh session lows posted at 1.1221 post data release. The Aussie was heavily dumped across the board after the Chinese factory gauge dropped to fresh six and a half year lows on Wednesday, raising fears over the Chinese external demand.

Whilst, the losses in the AUD/NZD pair remains
restricted as the NZD/USD pair also slips in the red on heightened concerns that New Zealand’s economy will also suffer from China slowdown. Australia’s and New Zealand’s biggest trading partner is China.

The Caixin-Markit China Manufacturing Purchasing Managers’ Index (PMI) fell to a preliminary 47.0 in September from 47.3 last month, the lowest reading since March 2009.

Moreover, rising risk-aversion on the back of China fears is also likely to keep the cross in the AUD/NZD undermined.

AUD/NZD Levels to watch

The pair has an immediate resistance at 1.1263 (Today’s High) levels, above which gains could be extended to 1.1300 levels. On the flip side, support …read more

Source:: FX Street