The Australian dollar fell to a cycle low overnight but began a turnaround in Europe. I suspect the bears are taking some profits with with Chinese stocks near support.
In any case, it’s impressive to see the Aussie up a half-cent on a day when the Shanghai composite fell 5.3% and perhaps it points to a broader bounce. The daily chart shows a bullish engulfing candle on a close above 0.9259 (spot is at 0.9270). Look for buy stops above 0.9290 but strong offers ahead of 0.9300.
