The Australian dollar continues to climb, reaching a nine month high above 0.77 yesterday. The AUD/USD is currently trading right around 0.7650 (as I write this) after being around 0.77 earlier today. China Manufacturing Grows First Time Since June 2015
The ASX200 continues to ease and has almost closed back down below 5000 again.
For most of this year the Australian dollar has moved steadily higher and only in the last few days has surged through 0.77 to a new nine month high. It has shown some signs of struggling at this level for the last 48 hours and has just eased away a little.
As I have mentioned previously, many traders will be sitting on the side lines waiting for any sign of a sell-off, waiting to jump in and short. It may receive some support around 0.7500 however if this fails, look for the sellers to jump in and potentially move it back to the key 0.72 level again quite quickly. Although looking at the congestion between 0.74 and 0.75, this could also be a level of support for the AUD/USD.
Again, there isn’t a lot to report about the ASX200 – after failing to break through resistance at 5200 a couple of weeks ago, it has since eased away to back below 5100.
Image from MetaStock
The current medium term up trend is now back under threat as we are likely to see a lower peak formed around 5100 and therefore below the recent 5200 level.