AUD/USD: rally capped post positive Chinese data

By FXStreet AUD/USD was a mixed bag on the surprise upside in the Chinese data that has shown the manufacturing sector has slotted itself back into expansion for the first time since mid-2015.

The official Manufacturing PMI for March from China came in as 50.2 vs expected and 49.4, prior 49.0. The Non-manufacturing that came out early arrived at 53.8 vs prior 52.7.

The knee jerk was a bid to the 0.7700 level and then it sold off back to the start again by some 20 pips. Not the kind of reaction one might expect considering the hype that Yellen has created again around China. However, this data is also supportive to the greenback. The 0.77 handle is a tough nut to crack and it might take a series of supportive data for the Aussie to make a clear break higher considering how far it has risen already. We now await the next manufacturing PMI data in the Caixin.

AUD/USD levels

0.7680 needs to be broken on a daily basis with closes and then, and only then, might there be the possibility of a convincing bullish trend developing on the 0.77 handle as well. The key target thereafter would be 0.7850 (38.2% …read more

Source:: FX Street