AUD/USD touches 0.7299

There are two ways to take the Chinese devaluation

  1. A sign that China will do whatever it takes to stimulate 7% growth
  2. A sign that China's economy is in very bad shape and officials are hitting the panic button

Right now, option #2 is winning.

The Australian dollar looked to be forming a base above 0.7300 but it's given way as stocks and commodities are crumbling.

The major support level is 0.7235, which was the July 31 low. That's followed by the trendline starting in 2000, at 0.7132.

Australian dollar orders:

  • Bids at 0.7280
  • 0.7260 with stops below
  • 0.7235
  • 0.7220 with large stops reported