To the immediate downside, immediate support is noted at 1.0410; “the level is quite an important static support, and won’t be easy to take, unless a strong come of negative mood among investors,” says Valeria Bednarik, Chief Analyst at FXstreet.com.
If the market manages to turn bullish in the sessions ahead, Ms. Bednarik says an “extension above 1.0470 is now required to see the pair firming back higher, with 1.0535 as probable bullish target for today.”
Asian stock markets are mixed this Wednesday. At the time of writing, Japan 225 is quoted up 34.73 points, or 0.4% at 9158.50. S&P/ASX 200 is quoted down less than a point at 4394.10. Hang Sen 40 is up 50.07 points, or 0.2% at 20652.00. S&P CNX Nifty is down 9.95 points, or 0.2% at 5600.05.
As Sean Lee, founder of FXWW explains: “Chinese stocks are coming off two very bad days and this had had quite an adverse effect on the AUD. Dealers will be keeping a close eye on the Shanghai index for some sort of a lead.”