AUD/JPY probes the 74.00 handle after above-forecast China PMI
- AUD/JPY remains bid on upbeat China PMI data.
- The NBS manufacturing PMI rose to a three-month high in June.
- The pair remains vulnerable to broader market sentiment.
AUD/JPY jumped 10 pips to probe the psychological resistance at 74.00 after China reported a better-than-expected manufacturing and non-manufacturing data for the month of June.
China's NBS Manufacturing PMI rose to a three-month high of 50.9 in June, beating the expected print of 50.4 and up from the previous month's reading of 50.6. The NBS or government PMI focuses mainly on state-owned enterprises, which have relatively easy access to credit than the small and medium-sized export-oriented units.
Meanwhile, Non-Manufacturing PMI jumped to a seven-month high of 54.4 in June from May's 53.6.
Looking forward, the pair would struggle to extend gains, if losses seen in stock markets in China and Hong Kong weigh over Japan's Nikkei index and Australia' S&P/ASX 200, which are currently trading in the green. Also, the futures on the S&P 500 are up just 0.10%, a sign the US stocks may struggle to extend Monday's rally.
A recent resurgence in coronavirus infections has forced some investors to consider the possibility of a long drawn out recovery. After all, confirmed COVID-19 cases worldwide rose past 10 million and deaths surpassed 500,000 on over the weekend, according to Reuters.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
