AUD/USD climbs above 20-DMA on poor China PMI, RBA eyed

By FXStreet The AUD/USD pair keeps the bid tone intact for the second straight session this RBA Tuesday, and now flirts with session tops, despite sluggish Chinese manufacturing sector activity report, released by Caixin.

AUD/USD: RBA next in focus

Currently, the AUD/USD pair advances 0.23% to fresh session highs of 0.7688, finally testing key 20-DMA barrier located at 0.7683. The Aussie extends its bullish run and clinches fresh highs, as the bulls completely ignored the poor macro data published out of China, as the main driver for the AUD remains the RBA cash rate decision due alter this session.

China Caixin manufacturing PMI for April disappointed markets, coming in at 49.4, declining from 49.7 posted in March and missing expectations of a 49.8 reading, which signals further deterioration in the country’s manufacturing sector.

Moreover, the major also received fresh impetus from surprisingly positive Aus building approvals data published in the last hour. Building consents rose 3.7% month-on-month in March, following a revised 3.1% increase in February, and coming in much better than the forecast of a 1.8% decline.

With the economic updates out of the way, all eyes now remain on the RBA’s policy decision, with markets widely expecting a rate cut in wake of the …read more

Source:: FX Street