FXstreet.com (San Francisco) - The Australian dollar fell to three-week lows against the Japanese yen overnight Wednesday, as AUD/JPY managed to push below support at 82.55 (21-day EMA) to extend as low as 82.18 before closing the North American session down 0.6% at 82.46.
On Tuesday, the false break of 83.50 resistance produced a bearish Hikakke pattern print on the Daily chart, a technical price action pattern that can signal when price may be set for a correction; it also formed in the 61.8% Fibonacci retracement zone of the 88.64/74.48 downswing.
In the session ahead, China manufacturing PMI data will be key risk event for AUD given China and Australia’s close trade ties. Traders will be looking to see if the index will show some improvement in August since it has been below the 50 level since last October, indicating ongoing contraction in the Chinese manufacturing sector.
On Tuesday, the false break of 83.50 resistance produced a bearish Hikakke pattern print on the Daily chart, a technical price action pattern that can signal when price may be set for a correction; it also formed in the 61.8% Fibonacci retracement zone of the 88.64/74.48 downswing.
In the session ahead, China manufacturing PMI data will be key risk event for AUD given China and Australia’s close trade ties. Traders will be looking to see if the index will show some improvement in August since it has been below the 50 level since last October, indicating ongoing contraction in the Chinese manufacturing sector.
