Forex: AUD/USD sharply lower after lackluster China PMI data (Barcelona) - The AUD/USD is trading sharply lower after the HSBC China PMI print came in at 50.5 vs. 51.4 (estimates). The pair was trading around 1.0255 but quickly dropped 30 pips to the 1.0225 area after the release. The US Dollar is higher across the board as market participants once again flock to the greenback as the safe haven currency.

The FX Trend Index remains slightly bearish on the 1 hour time frame, while the OB/OS Index is neutral. The main support levels to focus on will be the 1.0200, followed by the critical 1.0160 support pivot which is the bottom end of the trading range which has been established since June 2012. A move below here could pave the way to lower prices in coming sessions as the next major support level sits around .9936. Look for firm resistance near 1.0240 (previous support on 1 hour chart), followed by 1.0280 (also previous support on 1 hour chart).