AUD recovery averted by concerns about China

Relatively strong labour market report last night could benefit the auusie recovery. However, the losses seen over the past few days were not been completely retraced by it. A strong rise in the number of full-time positions and a fall in the unemployment rate constitute good conditions for AUD strength.

And moreover the Chinese stock markets have not collapsed any further today. However, it however seems as if concerns about China were present everywhere. 

The Chinese government has intervened on the stock markets on a large scale. Buying was facilitated with the help of administrative measures whereas sales were made more difficult. 

Moreover large financial resources were employed. So it is uncertain whether today's stabilisation is merely artificial. In an environment such as this the aussie is therefore struggling which is hardly surprising. The upside potential in AUD-USD seems limited against this background, says Commerzbank.