AUD/USD gets no bullish impetus from above-forecast China Services PMI


  • AUD/USD is struggling to recover ground despite an above-forecast China services PMI. 
  • Australia's growth rate slowed in the third quarter, reinforcing dovish RBA expectations. 
  • The escalating Sino-US political tensions could complicate matters on the trade front. 

Aussie dollar is not impressed by an above-forecast China service sector data released soon at 01:45 GMT. 

China Caixin Services PMI rose to 53.5 in November, beating the expected print of 52.7 by a big margin. The gauge stood at 51.1 in October. A reading above 50 indicates expansion. 

Put simply, China's service sector expansion gathered pace in November. Even so, the Aussie dollar, a proxy for China, is struggling to find bids. 

The AUD/USD pair has barely moved in the last 15 minutes and continues to trade in the red at 0.6836. 

The lackluster response could be associated with the weaker-than-expected Aussie third-quarter gross domestic product (GDP) released at 00:30 GMT and the heightened odds of an RBA rate cut in February. 

Further, renewed trade tensions could be forcing the AUD bulls to sit on the fence. US President Donald Trump said overnight that he may delay a trade deal with China till after the 2020 presidential election. 

Meanwhile, the US House on Tuesday passed a bill demanding sanctions on senior Chinese officials over human rights violations in Uighur province. The move irked China, whose foreign ministry warned of retaliation. 

The Sino-US political tensions could complicate matters on the trade front. All in all, the odds appear stacked in favor of the AUD bears. 

Technical levels

AUD/USD

Overview
Today last price 0.6836
Today Daily Change -0.0008
Today Daily Change % -0.12
Today daily open 0.6844
 
Trends
Daily SMA20 0.6816
Daily SMA50 0.6807
Daily SMA100 0.6818
Daily SMA200 0.6919
 
Levels
Previous Daily High 0.6863
Previous Daily Low 0.6814
Previous Weekly High 0.68
Previous Weekly Low 0.6754
Previous Monthly High 0.6929
Previous Monthly Low 0.6754
Daily Fibonacci 38.2% 0.6844
Daily Fibonacci 61.8% 0.6833
Daily Pivot Point S1 0.6818
Daily Pivot Point S2 0.6791
Daily Pivot Point S3 0.6769
Daily Pivot Point R1 0.6867
Daily Pivot Point R2 0.6889
Daily Pivot Point R3 0.6916

 

 

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