AUD/USD extends recovery as China’s Caixin PMI follows official gauge’s footsteps
|- AUD/USD rises as China’s activity numbers came in positive for November.
- Traders await confirmation of the recent doubts on the US-China trade deal.
- US data, trade headlines will offer a busy day ahead.
With the recently upbeat data from China, AUD/USD extends the pullback from multi-week low to 0.6775 during Monday’s Asian session.
China’s November month Caixin Purchasing Managers’ Index (PMI) rose past-51.4 forecast and 51.7 prior to 51.8. The data follows upbeat official manufacturing prints from Australia’s largest customer.
During the weekend, China released official readings of its November month Manufacturing PMI. The key activity gauge surged to 50.2, the highs since April, regained its stage in the expansion territory following many months of being below 50.0.
Aussie buyers cheered the data from its largest customers while ignoring unimpressive prints of second-tier Australian data from housing, jobs and inflation frontiers. As a result, the US 10-year treasury yields surge beyond 1.80% while markets in Australia are also firmer by the press time.
Doubting the move was Axios report that the phase-one trade deal between the United States (US) and China will take place early next year. The report cites Hong Kong Act, the US tariff rollback and China’s promise to purchase the US agriculture products as the main roadblocks.
Technical Analysis
While a spinning bottom formation on the daily (D1) chart favors the pair’s recovery, buyers will look for entry above 21-day Exponential Moving Average (EMA) around 0.6800. The absence of which could keep dragging the quote towards 0.6700 round-figure.
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