AUD/USD now consolidating the Chinese crisis

By FXStreet FXStreet (Guatemala) – AUD/USD remains consolidated in a tight 10 pip range as Asia is full desks without a catalyst to move on. The Yuan fix was less eventful of late with the mid point set some 70 pips lower. The Chinese stock markets are up 1% in the A50 and the Hang Seng in similar territory.

The Aussie made a recent low of 0.6926 and its minor recovery has so far made a high of 0.7035, breaking the 1hr 50 SMA at 0.6999 which was a bullish score despite the near term fade. Markets were mixed overnight with oil being about the only highlight, and the Aussie was unable to draw any further stimulus on anything concrete. We are now looking ahead to data in China and Australia in the trade and jobs numbers respectively.

AUD/USD levels

Technically, however, late September lows remain compelling at 0.6940 ahead of the 0.6907 lows and despite the quiet, a storm could be a trigger point that the charts need to bring the 2004 low back into focus. A correction would have the 0.7000, then 0.7040 (100 1hr sma) and 0.7080 are first key resistances. The bulls may struggle …read more

Source:: FX Street