Global macro overview for 24/07/2015:
The recent data from China (Markit Flash Manufacturing PMI for month of July: 48.2 vs. 49.8 expected, 49.4 prior) was worse than expected as the purchasing managers see the business is contracting more. This data has helped the AUD/USD pair to hit the technical support level mentioned a week ago (thick red line), because China is a strategic business partner of Australia. Moreover, the continuing decline in iron ore prices and S&P rating agency recent comment (Australia’s AAA rating could be affected as Australia’s budgetary performance does not improve broadly as they currently expect) are simply adding fuel to the fire as the sell-off continues.
The material has been provided by InstaForex Company – www.instaforex.com