The Australian dollar extends weakness on Friday, holding firmly in red for the fourth consecutive day and on track for strong bearish weekly close.
Extension of Thursday’s strong bearish acceleration was partially limited by better than expected China’s PMI data for Aug and could be further obstructed by strengthening momentum, but overall picture remains bearish and keeps risk at the downside.
Higher base at 0.7140 zone (23/24 Aug lows) is under pressure, with break here to open way towards key support at 0.7202 (15 Aug low, the lowest since 02 Jan 2017). Limited upticks could be seen as positioning for fresh downside and only firm break above daily Tenkan-sen (0.7309) could sideline immediate bears.
Res: 0.7267, 0.7309, 0.7327, 0.7349
Sup: 0.7214, 0.7202, 0.7190, 0.7160