- AUD/USD benefits from surprisingly positive data from the largest customer.
- Market’s risk-tone remains mildly positive, takes clues from the US off-late.
- Aussie data recently flashed mixed signals while comments from PBOC adviser signaled further stimulus from the largest customer.
Following its flash crash drop from 0.6190 to 0.6080, AUD/USD bounces back to 0.6165 amid the Asian session on Tuesday. While a fat finger is most likely behind the latest flash crash, recovery in China’s official PMI data helped the pair to reimburse the losses.
China’s official Manufacturing and Non-Manufacturing PMIs for March surprised markets with above 50.00 readings. In doing so, the headline manufacturing gauge crossed 45 forecast and 35.7 prior to flash 52.00 while the Non-Manufacturing PMI rose to 52.3 compared to 37.8 expected and 29.6 previous readouts.
Earlier during the day, February month data from Australia suggested Private Sector Credit surged past 0.2% MoM forecast to 0.4% whereas HIA New Home Sales crossed -1.9% forecast and 5.7% prior with 6.2%. Before that, the weekly Consumer Confidence figures refreshed the record low while declining to 65.3 from 72.2 prior.
Also recently driving the Aussie prices could be comments from the adviser of the People’s Bank of China (PBOC). The diplomat stated that setting GDP target may force China to resort to flood-like stimulus, GDP growth between 4 to 5% will be difficult to achieve for China.
Having witnessed a slew of Aussie and China data, markets may seek fresh direction from coronavirus headlines.
Technical analysis
Unless providing a daily closing beyond 0.6200 mark, comprising 21-day SMA odds favoring the pair’s run-up to March 09 low near 0.6310 remains weak. Alternatively, 0.6080, 0.6000 round-figure and 10-day SMA near 0.5960 could entertain sellers during the pullback.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0600 as focus shifts to Powell speech
EUR/USD fluctuates in a narrow range above 1.0600 on Tuesday as the better-than-expected Economic Sentiment data from Germany helps the Euro hold its ground. Fed Chairman Powell will speak on the policy outlook later in the day.
GBP/USD stays below 1.2450 after UK employment data
GBP/USD trades marginally lower on the day below 1.2450 in the early European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, weighing on Pound Sterling.
Will Gold reclaim $2,400 ahead of Powell speech?
Gold price consolidates the rebound below $2,400 amid risk-aversion. Dollar gains on strong US Retail Sales data despite easing Middle East tensions. Bullish potential for Gold price still intact on favorable four-hour technical setup.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Canada CPI Preview: Inflation expected to accelerate in March, snapping two-month downtrend
The Canadian Consumer Price Index is seen gathering some upside traction in March. The BoC deems risks to the inflation outlook to be balanced. The Canadian Dollar navigates five-month lows against the US Dollar.