AUD/USD drops to lowest since Feb. 12 after dismal China data

China services PMI missed estimates, pushing AUD/USD to lowest since Feb. 12.
The support at 0.7054 could come into play if the RBA statement sounds dovish.

Omkar Godbole FXStreet Contributor

The already weak AUD/USD slipped to a session low 0.7066 - the lowest level since Feb.12 after a big miss on China data.

The widely tracked services purchasing managers’ index (PMI) for February came in at 51.1, missing the estimate of a rise to 53.8 from the previous month’s print of 53.6.

Notably, the gauge for new business dropped, suggesting slowing growth in demand across the services sector and both input and output costs edged up.

The AUD, therefore, shed 12 pips after the release of the dismal data. As of writing, AUD/USD is trading at 0.7071.

The focus now shifts to Reserve Bank of Australia (RBA) rate decision, due later today. The central bank put rate cuts back on the table last month and since then major Australian lenders like Westpac have called two rate cuts this year.

The immediate support at 0.7054 (Feb. 12 low) could be breached if the RBA sounds more dovish-than-expected, forcing markets to price in the possibility of two or more rate cuts this year.

AUD/USD Technical Levels

1. R3 0.7158
2. R2 0.7138
3. R1 0.7114
PP 0.7094
1. S1 0.7071
2. S2 0.7051
3. S3 0.7027

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD keeps the red near 0.6950 after weak Aussie jobs data

AUD/USD holds losses near 0.6950 on disappointing Australian jobs data, extending the previous day's retracement slide from the monthly high and hitting a fresh weekly low during Thursday’s Asian session. Meanwhile, declining US bond yields drag the US Dollar away from the April 2025 high, touched after Wednesday's hot US CPI, helping limit losses for the currency pair.

USD/JPY slides back below 158.00 as USD reverses post-CPI gains

USD/JPY extends the previous day's pullback from a three-week high, attracting follow-through selling and sliding below 158.00 during Thursday's Asian session. Traders remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. The US Dollar, meanwhile, reverses Wednesday's hot CPI-led gains to April 2025 highs as US bond yields retreat on China bond-buying talk, further pressuring the pair.

Gold rebounds firmly as China Treasuries-buying report smashes US yields

Gold stages a solid comeback from weekly lows, retakes $4,150 early Thursday. US Dollar declines sharply alongside Treasury yields on China’s bond-buying report. Technically, the daily RSI remains bearish and a headwind for Gold buyers.

Zcash declines as US inflation surprise offsets fresh ETF inflows

Zcash (ZEC) is trading in the red on Friday, extending its previous day’s roughly 6% losses as the broader cryptocurrency market falls on rising US inflation. The US Consumer Price Index (CPI) print came in higher than expected, at an annual increase of 3.7% versus the expected 3.6%, raising concerns about inflation and rate hikes.

China seems routing US Treasury holdings through Canada

According to a Bloomberg report, China seems to be moving United States securities to non-US custodian banks in other countries, masking its role in financing US deficits.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?