AUD at mercy of stock unwind trades after latest Chinese PMI data exacerbated the sense of risk-aversion
- Asian markets extend their free-fall for the second straight session on Friday, stock sell-off suggests more position adjustments tonight
- Geo-political tensions in Turkey, Greece, and Korean Peninsula add to the generalized risk aversion, helping safe-haven Japanese yen
- AUD/JPY hit session lows at 89.71, before paring some losses to currently trade at 89.80
- Strong support for the pair is seen at 89.71, and then at 89.52, while resistance on the topside is located at 89.98 (session high) and then at 90.50
- Bias still lower, bears under control, test of 89.33 (Jul 28 low) likely, however caution advised as Stochs and RSI at oversold levels
Recommendation: Good to sell rallies at 89.90, SL: 90.50, TP: 89.30
