Announcements of major central banks have been incorporated by the markets, the Australian dollar could now lose its value because of fears about the global economy.

Mover of global growth, China confirms once more its slowdown while preliminary PMI in the manufacturing sector, published by HSBC showed a contraction for the eleventh consecutive month. Australian currency suffered from particularly bad news from Beijing because of strong dependence of Australia to Chinese imports.
The situation is gloomy in the eurozone where private sector activity shows its sharpest contraction in three years according to a first estimate.

While the Australian central bank recently said that the resilience of the local economy compensated the weakness of international indicators, an IMF representative tempers this findings by stating that the outlook for the Australian economy was surprisingly low.

Graphically, the Aussie has benefited from the recent crisis measures to form a double top but prices are still struggling to stay sustainable over USD 1.06. It’s likely that a further decline in the short term could bring prices to the neckline at USD 1.0190.