AUD/USD: Look to Chinese stock market open for leads

Chinese stocks are coming off two very bad days and this had had quite an adverse effect on the AUD. Dealers will be keeping a close eye on the Shanghai index for some sort of a lead.

There is fairly solid technical support at 1.0395 (which is a prior hourly high and the 50% retracement 1.0165/1.0620) and there are sell orders reportedly building above 1.0500, so playing this 1.04/1.05 range looks like a reasonable strategy.


  1. Sean, I am interested to see whether shanghai will break the previous low. But my gut feeling is that Chinese equity is due for a nice rebound once the next generation of leaders are settled. I agree at the moment 1.04 to 1.0540 is a reasonable bound.

Leave a Reply

Your email address will not be published. Required fields are marked *