AUD/USD demand after improved China PMI’s

By FXStreet FXStreet (Guatemala) – AUD/USD has spiked on the back of beating expectations in Chinese Caixan manufacturing PMI’s for September at 48.3 vs 47.5 consensus and 47.2 previous.

The data falls within contraction territory still for the sector, despite a recovery likely spurred on by stimulus, but coupled with the weekend’s manufacturing PMI’s for October that were a miss, the market is unlikely to get too carried away on the bid ahead of the RBA interest rate decision and statement this week. We also have Nonfarm Payrolls as the major highlight and anything reasonably bullish form that reading will likely leave the door open for a December rate hike from the Fed, supporting the case for a lower price within the broader bearish trend.

AUD/USD levels

Technically, are near term bullish case is building while advancing above the pivot of 0.7119 and breaking up from the 20 SMA hourly supporting level at 0.7120. The highs need to break the 28th October high of 0.7159 targeting R2 at 0.7199 through the 200 SMA at 0.7188. On the downside, look for a break through the 0.71 handle to test the 0.7050/80 area of support is guards the downside to 0.7000.
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Source:: FX Street