AUD/USD bulls back into the trenches

By FXStreet FXStreet (Guatemala) – AUD/USD is caught in a half a figure range on the 0.70 handle after losing the territory of recent highs at the midpoint of the 0.71 handle while the greenback has come back into vogue in the absence of anything concrete domestically after Australia’s surprise inflation numbers and outside of commodity and global stock performances, despite the yuan stabilizing again in the middle to the end of January.

Overnight, the Chinese PMI’s, on balance, were again a disappointment with only the Caixan surprising to the upside and somewhat confirms a continuation of an economy in contraction. Today was the US manufacturing ISM for January that was a little weaker than expected, but the key part of the data came in the degree of weakness within in the employment component, which fell to 45.9 from 48.0 – the worst outcome since June 2009, as noted by James Knightley, analyst at ING Bank who explained that this suggests that the sector will be a drag on overall employment growth in Friday’s payrolls at the end of the week.

All eyes on RBA, well, Stevens actually

But, before, then, eyes will be on the RBA. While there are zero expectations …read more

Source:: FX Street