Aussie Dollar under pressure after PBOC move

  • China’s central bank devalued the Chinese Yuan by almost 2 %, following poor economic data
  • The PBOC wants the exchange rate to “better reflect market forces”
  • USD/CNY rose from 6.1162 to 6.2298
  • This led to broad USD demand in the Asian session, putting the Aussie Dollar under pressure
  • AUD/USD fell from 0.7430 to a low of 0.7305
  • Demand emerged ahead of the 0.73 level, but AUD/USD is looking fragile after reversing almost all of the recent days gains
  • Break sub-0.73 would pave the way for another test of 0.7230 and below there, there is no significant support until 0.71 and then 0.70

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