When is China's Caixin Manufacturing PMI and how could it affect the AUD/USD?
|China Caixin Manufacturing PMI overview
Having witnessed downbeat prints of China’s NBS Manufacturing PMI, not to forget the previous month’s failure to keep the expansion, China’s May month Caixin Manufacturing PMI, up for publishing at 01:45 GMT on Monday, become the key for AUD/USD traders.
Forecasts suggest another below-50 level of 49.6 versus the 49.4 prior, which in turn may raise challenges for the RBA’s Governor Philip Lowe who recently spoke positively for the economy.
How could it affect the AUD/USD?
Having initially surged to the 15-week high of 0.6715, AUD/USD takes rounds to 0.6690 by the press time of the early-Asian session on Monday. The pair might have cheered the US dollar weakness amid the Sino-American tussle and riots in some parts of the US. However, bears stay hopeful considering the latest disappointment from China’s official PMI data. Should the Caixin Manufacturing PMI outcome be another contraction suggesting mark under 50, the quote might step back to a two-week-old support line, at 0.6620 now.
Alternatively, a surprise increase in the data, or a positive miss by a larger gap, can extend the Aussie pair’s rise further above 0.6700 towards February month’s peak surrounding 0.6775.
Key Notes
AUD/USD: Bulls attack 0.6700 ahead of China’s Caixin Manufacturing PMI
Chart of the day: AUD/USD is at make-or-break resistance, 0.6400 or 0.6820
AUD/USD Forecast: At multi-week highs, bullish
About the China Caixin PMI
The Caixin China Manufacturing PMI™ is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies.
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