Forex: EUR/AUD back above 1.19 after ugly HSBC PMI China

FXstreet.com (Barcelona) - EURAUD is currently at 1.1929 back to its opening price, after dipping to as low as 1.1900 round for the present Asian session, retreating from yesterday's 1-month fresh highs at 1.1960. The cross went lower to mentioned session lows on anticipation of flash HSBC PMI China which finally came much worse than previous, sending EURAUD back to initial price.

HSBC PMI China came in worst for 2012 at 47.8, and much worse than previous for the month of July at 49.5, even though anything below 50 means contraction, and last time something above 50 was seen was last October 2011. The cross is up some +2.7% since early Aug all time lows around 1.1610, until when SNB has reported was buying Aussie against EUR in amounts worth more than ¬100B, in order to diversify EUR was previously bought to maintain the EURCHF peg at 1.20.

In case EURAUD keeps on rising, immediate resistance to the upside shows at recent 1-month highs yesterday at 1.1960 and 38.2% retrace of 1.2524/1.1610 latest leg down, followed by July 08 lows/July 16 highs at 1.1994, and July 13 highs and 50% retrace of same down leg at 1.2060. For the downside, closest support comes at recent session lows and 38.2% retrace of latest up leg 1.1776/1.1960 at 1.1900/1.1892, followed by Monday's highs and 62.8% retrace of same up leg at 1.1850, and Aug 21 highs at 1.1825.