An upbeat China PMI sparked a half-cent rally in the Australian dollar but it’s been sliding backwards ever since.
AUD/USD ran into a wall of offers at 0.9445/50 yesterday and has slowly chopped lower and just hit 0.9388. About $330 million in options run off at the top of the hour in the 0.9355/60 zone so that could pull the pair further. Some bids are at 0.9380 as well.
In the bigger picture, the 0.9462 level remains critical. There is still a threat of a breakout but the inability to gain traction following the Chinese data and the lack of any giddy-up in the market favors more consolidation downside.
AUDUSD daily
