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30 Sep 2014
AUD: Counter-intuitive reaction to China data
FXStreet (Bali) - Despite a lower-than-expected China HSBC PMI final reading, coming at 50.2 vs 50.5 preliminary, it appears as though the market sentiment towards the Australian Dollar may have improved, if only marginally.
The Chinese data, which may have been another excuse to sell the AUD, has instead seen the Antipodean currency appreciate some 20/25 odd pips from 0.87 mark up towards 0.8725, as the intraday studies still display extreme oversold conditions.
These type of counter-intuitive reactions can be quite telling about market positioning and sentiment for the day. In the case of the latest AUD/USD bounce seen, failure to push below 0.87 on bad news could be the first glimpses of hope for bulls.
The Chinese data, which may have been another excuse to sell the AUD, has instead seen the Antipodean currency appreciate some 20/25 odd pips from 0.87 mark up towards 0.8725, as the intraday studies still display extreme oversold conditions.
These type of counter-intuitive reactions can be quite telling about market positioning and sentiment for the day. In the case of the latest AUD/USD bounce seen, failure to push below 0.87 on bad news could be the first glimpses of hope for bulls.