AUD Trading Outlook (24-07-2012)

Australian Dollar (AUD) the AUD/USD was the risk currency in play yesterday down over 200 pips from Friday as stocks collapsed and traders who had bought into the Aussie rally last week where caught wrong-footed. The risk sensitive currency will track stocks and has a chance of collapsing in a major dislocation event such as Greece leaving the EU or Spanish Debt Run. The other big risk is Chinese data with HSBC PMI today and the China slowdown story has been growing in importance for the Aussie traders lately. Looking ahead, July HSBC Flash Chinese Manufacturing PMI previously at 48.2. Also RBA Governor Stevens Speaks in Asia today.