AUD/USD’s downside coming back into vouge

By FXStreet FXStreet (Guatemala) – AUD/USD has wobbled on the first release of Chinese data that came out slightly earlier than expected. However, full markets are on it and the price of the Aussie made a low of 0.7042 on the release.

China’s manufacturing PMI for January came in at 49.4 vs 49.6 expected and 49.7 last, with the official non-manufacturing PMI (Jan) at 53.5 vs 54.4. We now await the Caixan data within the hour as next catalyst. Meanwhile, the Aussie has been rejected within the technical reversal of the 2016 downtrend at recent highs of 0.7140.

While China continues to contract in the manufacturing sector and while commodities carry on tanking with the threat of bonds plunging, specifically in the energy sector, for the time being at least, the USD is under demand in the broader scale of the global crisis and the fundamental case for the Aussie relies on the RBA standing fast in 2016 while markets are slowly starting to lose faith in the US economy’s resilience and the Fed.

PBOC sets USD/CNY at 6.5539 vs 6.5766 last close

AUD/USD levels

AUD/USD is now trading below the 4hr 200 sma at 0.7088, the pivot at 0.7094 and …read more

Source:: FX Street