Whilst AUD/USD players eventually took out the 1.0350 barrier overnight in the aftermath of shocking PMI releases from the EZ and in particularly Germany, there was not much further follow through. AUD/USD bottomed out at 1.0336 and climbed higher during the NY session in stuttering fashion to close on Thursday at 1.0389.
All risk trades were sold - Gold, equities, commodities - however the US market was seemingly content to run their own race and took advantage of some of the cheap prices available to cover shorts. It is hard to deny the fundamentals however and there is little doubt that China slowdown is real - it just depends whether it is a soft or hard landing. Perhaps AUD/USD does not belong above parity but there is still plenty of sovereign buying interest around whilst Toshin demand (as outlined yesterday) will be provide some support. AUD/USD last at 1.0393.