Forex: AUD/USD barely above 1.02 ahead of China PMI

AUD/USD is currently at 1.0213, back to where it was yesterday in Asia-Pacific previous to Capex data, down from daily highs at 1.0290 printed in early London session. The pair is losing -1.06% for the week so far, with Gold also back below the key $1600 mark at $1580 last, and Oil at fresh 2-month lows, while SP500 finally closed in the negative -0.14%. All the attention goes now for the sequester in the US if it will take place at the end, still few hours to go to midnight in NY, with China PMI at 01:00 GMT in between, and AIG manufacturing index in Australia already released, better than previous month.

According to FXWW Sean Lee: “we can expect more slow range trading with a mild bearish bias,” in AUD/USD, the analyst says, adding: “Japanese retail investment funds have been selling AUD/JPY and hedge funds are still selling AUD/USD. On the other hand, Sovereign players and asset managers are primarily dip-buyers,” he notes, concluding: “With next big optionality at 1.0150 likely to prove magnetic, I favour buying a bounce out of this level.”

Immediate resistance to the downside for AUD/USD lies at Tuesday's lows 1.0200, followed by Wednesday's fresh 4-month lows at 1.0180, and Sept 05 lows at 1.0160. To the upside, nearest term resistance shows at Monday's lows 1.0247, followed by Monday's Asian session lows at 1.0260, and yesterday's/Tuesday's highs at 1.0290/5.