FXstreet.com (San Francisco) - AUD/USD is back trading below the 1.0500 mark in early Asia, last at 1.0493 after peaking at a 4-month high of 1.0537 overnight Tuesday.
In the current session, key focus and risk event for AUD will be Chinese manufacturing PMI figures for July:
“Australian manufacturing PMI numbers are due for release this evening but the more important reports will come from China,” says Kathy Lien, Managing Director at BK Asset Management. “When HSBC first put out their estimates for Chinese manufacturing last week, the data showed a smaller contraction, which the market interpreted to be good news for China and risk appetite.”
From a technical standpoint, “the hourly chart shows indicators turning slightly bearish, with no actual momentum, while in the 4 hours chart extreme overbought readings are starting to give up in RSI and momentum continues heading south above the 100 mark, diverging from price action,” explains Valeria Bednarik, Chief Analyst at FXstreet.com. “The long term bullish tone however, can stand a pullback even towards 1.0360 without being much affected.”
In the current session, key focus and risk event for AUD will be Chinese manufacturing PMI figures for July:
“Australian manufacturing PMI numbers are due for release this evening but the more important reports will come from China,” says Kathy Lien, Managing Director at BK Asset Management. “When HSBC first put out their estimates for Chinese manufacturing last week, the data showed a smaller contraction, which the market interpreted to be good news for China and risk appetite.”
From a technical standpoint, “the hourly chart shows indicators turning slightly bearish, with no actual momentum, while in the 4 hours chart extreme overbought readings are starting to give up in RSI and momentum continues heading south above the 100 mark, diverging from price action,” explains Valeria Bednarik, Chief Analyst at FXstreet.com. “The long term bullish tone however, can stand a pullback even towards 1.0360 without being much affected.”
