24 Jul 2015
AUD/JPY: China PMI-driven losses take it to 90.50
FXStreet (Bali) - AUD/JPY has broken a big level (91.00) to the downside, now exposing further bearish potential following a major disappointment on China's flash Caixin PMI.
China PMI at 15-month low
Flash China General Manufacturing PMI came at 48.2 in
July (49.4 in June), a 15-month low. As Caixin notes: "The estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data. July final PMI data will be released on 3 August 2015."
AUD/JPY technicals
The unambiguous decisive resolution through 91.00 has taken the rate over 40 pips lower to presently print lows around 90.55, with a break of 90.50 likely to open the doors for an acceleration towards 90.00, not before a possible retracement to grab liquidity as the pair is down more than half a cent since the release of the worsened Chinese data. On the upside, as long as 91.00 up to 91.30 is protected, sellers should be in control.
China PMI at 15-month low
Flash China General Manufacturing PMI came at 48.2 in
July (49.4 in June), a 15-month low. As Caixin notes: "The estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data. July final PMI data will be released on 3 August 2015."
AUD/JPY technicals
The unambiguous decisive resolution through 91.00 has taken the rate over 40 pips lower to presently print lows around 90.55, with a break of 90.50 likely to open the doors for an acceleration towards 90.00, not before a possible retracement to grab liquidity as the pair is down more than half a cent since the release of the worsened Chinese data. On the upside, as long as 91.00 up to 91.30 is protected, sellers should be in control.