AUD/USD Pair

Earlier today I saw a small positive divergence in $AUD in this post

I showed the short term positive divergence in which I said,

  "Short term though there's a small positive divergence which could either be a consolidation or a bounce..."


And I showed the longer term trend 3C chart and said, 


" This is what the longer term trend for the AUD looks like, very negative"


Here's a look at the AUD.USD pair tonight

 Price was just around this trendline, slightly under. The positive divergence wasn't that big, but it was enough to create a bounce as you can see from 21:00 (5 p.m. EDT) to the high tonight. However the longer term negative divergence was more then likely going to keep the bigger downtrend intact.

As you can see, the Australian dollar was hit hard on the China HSBC flash PMI showing contraction in Chinese manufacturing, something we first noticed a month before the first contractionary print in their PMI, we noticed this and suspected there was trouble in China because of the way commodities were trading. The AUD is very sensitive to China. As mentioned this week, the $AUD/$USD pair has had a very high rate of correlation to the US stock market, in fact it has acted as a leading indicator in many instances. We still have a long night ahead of us with the EU open in less then 3 hours, but as of right now, this print in the currency pair is not supportive of the stock market.


As of now, US futures are slightly off in the red.