{"id":9480,"date":"2010-05-17T13:15:41","date_gmt":"2010-05-17T17:15:41","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9480"},"modified":"2010-05-17T13:15:41","modified_gmt":"2010-05-17T17:15:41","slug":"audusd-underperforms-with-sci-collapse","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/17\/audusd-underperforms-with-sci-collapse\/","title":{"rendered":"AUD\/USD Underperforms with SCI Collapse"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Aussie is underperforming today in reaction to a collapse in the Shanghai Composite, which dropped by over -5% for the first time since August 2009.\u00a0 The SCI is now down by nearly 20% over the past month alone as investor uncertainty increases concerning a slowdown in China.\u00a0 Wen issued another statement today implying the government will continue to constrain the real estate market until prices are under control.\u00a0 In addition to downward pressure stemming from future policy fears, investors are concerned that the swift pullback in the Euro will have a noticeable impact on demand for Chinese exports considering the EU is the nation\u2019s top trading partner.\u00a0 Meanwhile, the Aussie is being damaged from this negative sentiment as a slowdown in China turns from concept to reality.\u00a0 A cool down in China could weigh on demand for Australian resources, denting economic growth in Australia and consequently pressuring the RBA to keep the rate hikes on hold.\u00a0 Such developments and connections are clearly proving negative for the Aussie has .90 fades into the background.\u00a0 Speaking of the RBA, investors will digest the RBA\u2019s meeting minutes tomorrow, meaning the Aussie could undergo a period of elevated activity during the Asia trading session.\u00a0 The EU, UK, and U.S. will also release key data points, meaning activity could pick up across the risk trade.<\/p>\n

Technically speaking, the Aussie faces technical barriers in the form of 5\/13 and 5\/10 highs.\u00a0 As for the downside, the Aussie has technical cushions in the form of intraday and 5\/7 lows along with the psychological .87 area.<\/p>\n

Price: .8803
\nResistances:\u00a0 .8803, .8822, .8843, .8855, .8869, .8885, .8898
\nSupports:\u00a0 .8782, .8765, .8744, .8734, .8721, .8709
\nPsychological:\u00a0 .89, .88, .87, May lows<\/p>\n

\"\"<\/a><\/p>\n

(click chart to enlarge)<\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The Aussie is underperforming today in reaction to a collapse in the Shanghai Composite, which dropped by over -5% for the first time since August 2009.\u00a0 The SCI is now down by nearly 20% over the past month alone as investor uncertainty increases concerning a slowdown in China.\u00a0 Wen issued another … <\/p>\n

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