Forex: AUD/USD between 1.0350 and 1.04 ahead of China HSBC

FXstreet.com (Barcelona) - The Australian Dollar continues to trade extremely erratic vs the US Dollar, a characteristic that is likely to put off many traders until the picture clears up. After continuous spikes off 1.0340/50 demand, camped sellers just above 1.04 have been also persistently bringing the rate down, resulting on very messy activity in between.

HSBC China manufacturing PMI is the next risk event at 21.45 GMT.

According to Valeria Bednarik, chief analyst at FXstreet.com: "The hourly chart shows price below its 20 SMA and indicators nearing their midlines, while the 4 hours chart technical readings also turn lower, yet still in neutral territory. While bulls still have control, there’s little to do unless price starts to move. Support 1.0300/30 is key as if below, buying interest will start to fade."

Sean Lee, founder at FXWW, said "AUD activity will depend on what happens in AUD/JPY as is again fast approaching the important physical and psychological barrier at 100.00. Option dealers report stops above this level."

Sean notes "AUD/USD trading in a wedge pattern on hourly charts, usually a continuation pattern, bullish in this case." The Australian-based analyst says stops reported above 1.0420.