AUD/USD has been trading within a horizontal channel pattern for sometime now, and currently it’s teasing the lower line of the pattern.
AUD/USD has been weighed down by the recent lower-than-expected Chinese economic data. The HSBC Manufacturing PMI was released at 47.8, against the previous month’s reading of 49.3. In addition, China’s leading index, although it indicated a 0.7% rise for July, for June was revised down to 0.0% from 0.1%. The economic development of China largely affects the performance of the Aussie because the country is one of the most trusted trading partners of Australia.
As earlier mentioned, technical analysis on the AUD/USD reveals it has retested the bottom line of the horizontal channel pattern. The area now acts as a support. If it breaks it to the upside, the pair may aim for the upper line of the pattern. On the other hand, if it breaks it to the downside, the pair may aim for the support area at 1.0320.
The best case scenario would be to wait for the pair to make some convincing runs from its current position before placing a trade according to the technical analysis above.
DISCLOSURE & DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER.