When is China's Caixin services PMI and how could it affect the AUD/USD?
|China Caixin Services PMI overview
Early Monday at 01:45 GMT will see China's Caixin services Purchasing Manager's Index (PMI), which markets are forecasting to clock in at 52.8, a bit lesser than the previous reading of 54.4 registered in March. The recent improvement in China’s manufacturing activity gauges gives importance to an otherwise non-event.
The latest challenge to the US-China trade deal by the US President Donald Trump and sluggish data from Australia could gain additional strength in dragging the Aussie downward if the services PMI register downbeat figure.
How could it affect the AUD/USD?
The AUD/USD pair recently dived beneath important support of 0.6980 as the US President Trump threatened to levy fresh tariffs on China ahead of this week’s crucial trade talks. Should the PMI figure from Australia's largest trading partner adds pessimism into the market, AUD/USD might not refrain from visiting 0.6920 and 0.6870 supports whereas 2016 lows near 0.6830 can please bears then after. On the contrary, upbeat data is likely to be questioned by 0.7000 resistance in order to restore investor confidence while aiming 0.7030 and 0.7055 resistances levels.
Key Notes
AUD/USD slipped below 0.6980 support as US Pres.Trump’s tweets dragged antipodeans down
AUD/USD Technical Analysis: Dead cat bounce or bull reversal near 0.7000 handle ?
AUD/USD Analysis: corrective advance could extend up to 0.7100
About the China Caixin services PMI
The Caixin Services PMI™ is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies. The panel has been carefully selected to accurately replicate the true structure of the services economy.
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