AUDUSD has been in a steady downtrend as the latest test of the falling
trend channel resistance is showing downside FX momentum. This marks the
third impulse wave lower, which might last until the bottom of the
channel at the .9150 minor psychological level.
Earlier in today’s Asian trading session, the HSBC flash manufacturing PMI for China showed weaker than expected results, leading to more FX momentum for a selloff. However, stochastic is already indicating oversold conditions, suggesting that buyers could take control of price action for now.
A few days back, the RBA monetary policy meeting minutes came in less dovish than expected and boosted the Australian dollar to the top of its range against the US dollar. However, the FX momentum of the downtrend was retained, as risk sentiment remained weak.
In addition, the latest FOMC minutes added to buying FX momentum for the US dollar. The report showed that policymakers are already considering tightening monetary policy sooner than initially anticipated. They acknowledged the strong pickup in hiring in June and the above-average gains in the non-farm payrolls report for the second quarter of the year.
Earlier in today’s Asian trading session, the HSBC flash manufacturing PMI for China showed weaker than expected results, leading to more FX momentum for a selloff. However, stochastic is already indicating oversold conditions, suggesting that buyers could take control of price action for now.
A few days back, the RBA monetary policy meeting minutes came in less dovish than expected and boosted the Australian dollar to the top of its range against the US dollar. However, the FX momentum of the downtrend was retained, as risk sentiment remained weak.
In addition, the latest FOMC minutes added to buying FX momentum for the US dollar. The report showed that policymakers are already considering tightening monetary policy sooner than initially anticipated. They acknowledged the strong pickup in hiring in June and the above-average gains in the non-farm payrolls report for the second quarter of the year.
