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Forex: AUD/USD continues to lose ground in Asia session

FXstreet.com (Barcelona) - The AUD/USD continues to break lower during the Asia session, down another 22 pips at 1.0256. This after the pair finished down 86 pips the previous day, mainly due to lackluster economic data from both the US and Australia. Earlier in the session, HSBC China PMI came in at 50.4 actual vs. 50.5 forecast. Reaction to the print was minimal.

According to Kathy Lien of BK Asset Management, "The Australian dollar fell sharply against the greenback today in what appeared to be a delayed reaction to overnight economic reports. With parts of Asia and most of Europe closed for May Day, the AUD/USD fell sharply at the start of the North American session."

She went on to add, "Australian manufacturing activity contracted sharply in the month of April, with the PMI index dropping to its lowest level in 4 years. The 7.7point decline from 44.4 to 36.7 was the steepest drop in a few years and shows how much deterioration has occurred in Australia's economy over the past few months."

From a short term perspective, the FXStreet.com Index remains Slightly Bearish on the 1 hour time frame, while the OB/OS Index reads Extremely Oversold. Initial support comes in at 1.0233 (demand candles from April 24th), while first resistance now sits at 1.0274 (the 9dma on 1 hour chart)

Forex Flash: The AUD/USD is not particularly ‘expensive’ - NAB

The Aussie finished the day sharply lower, down 86 pips at 1.0279. Economic data out of the US again missed estimates, with the ISM Manufacturing PMI 50.7 actual vs. 50.9 forecast. Many are starting to question what the appropriate value is for AUD/USD should this trend of economic weakness continue.
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Forex: GBP/USD - Another day of gains, but unable to take out 1.5600 resistance

The GBP/USD finished higher for a sixth straight day, closing up 18 pips at 1.5554. At one point during the day, the pair did trade as high as 1.5993, but was unable to take out the upper channel resistance at 1.5600. The UK will release its latest Construction PMI figure (48.00 forecast) in the upcoming European session at 8:30GMT.
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