FxWirePro: AUD/USD drops below 0.7400 after weak China PMI survey, more downside expected
The AUD/USD declined sharply on Thursday as Australian dollar was weighed down by lower oil prices and downbeat China's manufacturing data. The Aussie dropped around half a U.S. cent following disappointing economic repo…
The AUD/USD declined sharply on Thursday as Australian dollar was weighed down by lower oil prices and downbeat China's manufacturing data.
The Aussie dropped around half a U.S. cent following disappointing economic report from China, Australia's top export market.
A private survey of China's manufacturing activity contracted in May for the first time in nearly a year. That contrasted with an official survey released on Wednesday showing activity remained in expansionary territory.
Currently, the currency pair is trading at 0.7376 levels, it is set to decline further towards 0.7340 and 0.7300 levels in the short term.
To the upside, the strong resistance can be seen at 0.7439, a break above this level would take the pair towards next resistance level at 0.7475.
To the downside immediate support can be seen at 0.7366, a break below this level will open the door towards next level at 0.7348.
