AUD/JPY surges to intra-day high on China’s Caixin Manufacturing PMI
|- China’s Caixin manufacturing PMI refrains from following NBS pattern.
- Aussie buyers cheer upbeat data amid looming trade woes.
Having witnessed upbeat manufacturing data from China, AUD/JPY trades near the intra-day high of 75.24 during early Monday.
China’s Caixin manufacturing purchasing manager index (PMI) crossed 50.00 forecasts to reprint 50.2 marks during the month of May. The figure renewed investor confidence especially after disappointing manufacturing data from the dragon nation’s official NBS PMI reading.
In reaction to the upbeat data from its largest customer, the Australian currency (AUD) rose across the board.
Ahead of China’s manufacturing gauge, Japan’s Nikkei manufacturing PMI and Australia’s AiG performance of manufacturing index were also released. While Aussie manufacturing gauge dropped to 52.7 from 54.8, its counterpart from Japan rose past 49.6 market consensus and prior to 49.8.
Also, Australia’s May month ANZ job advertisements were also released recently and were down to -8.4% from -0.1% prior.
AUD/JPY is also considered as a barometer of risk sentiment and declines during times of market uncertainty. Another such gauge is US 10-year treasury yields that recently slumped to 20-month low and is presently losing nearly 2 basis points (bps) to 2.125%.
Having witnessed initial market reaction of China’s private manufacturing index, investors may now concentrate more on the news headlines concerning the US-China trade relations after China’s latest attempt to put top-tier US companies on its blacklist.
It should also be noted that developments surrounding the US-Mexico story could also gain market attention.
Technical Analysis
Unless breaking 75.30/40 horizontal-resistance, chances of the quote’s slump to 74.55/50 support-confluence including July 2016 lows and 61.8% Fibonacci retracement of January to April upside can’t be denied. However, the year 2016 bottom around 72.40 could disappoint sellers then after.
On the upside, sustained break of 75.40 highlights the importance of 21-day simple moving average (SMA) level of 76.00 whereas 76.40 and 77.00 may entertain buyers then after.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.