AUD/USD: steady awaiting RBA after 1st set of Chinese PMI's

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 1, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - AUD/USD has been better bid in the build up to the run of data today and has remained steady, so far at time of writing, on the back of the first set of Chinese PMI's.

    The Non-manufacturing sector, part of the economy that China is working hard to build up, had a prior reading of 53.1 in positive territory for October while for the month of November, the data arrived at 53.6 m/m, which is a plus. Meanwhile, NBS Manufacturing that was expected at 49.8, on a prior reading of 49.8, came in at 49.6 for the month of November and remains in contraction, not so positive. For the last five months, Chinese manufacturing has contracted according to the Government's last factory survey.

    We now await the Caixan Manufacturing PMI and the RBA outcome and statement. However, as Sean Callow, analyst at Westpac highlighted, the RBA is unlikely to offer any surprises and will leave the cash rate at 2% where it has been since May.

    AUD/USD levels

    0.7250/70 remains a key area of resistance. The 100 DMA at 0.7197 guards the 0.7170 ahead of the the Sep lows at 0.6907. 0.7015 and 0.6950 supports need to give first. On a continuation of the upside would need to break the 200 DMA at 0.7467 to alleviate downside pressures stemming from 0.9200 and Sep 2014 downtrend.
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