AUD and NZD risk event: HSBC China flash PMI
Most analysts are predicting that the latest HSBC version of Chinese PMI will come in pretty close to 50. Any number below 50 signifies a contraction in the manufacturing sector and numbers above show expansion.
Both the AUD and the NZD remain under significant pressure and they will move again today no doubt, depending on what the data says about the Chinese economy.
- AUD/NZD is stalling around previous daily lows at 1.0925 and longer-term technical analyses would seem to favour a buy-dip strategy. Any short-term rallies will be capped around 1.1100.
- AUD/USD is undoubtedly bearish still. I have gotten this move wrong and am not going to join in now.
- NZD/USD looks like it could test important long-term technical support levels near .7975, so selling rallies still logical play.