- AUD/USD fails to extend the corrective pullback from intraday low.
- China’s Caixin Manufacturing PMI drops to 51.5 in January.
- Risks dwindle amid mixed clues, market chatters drive silver as restrictions on US equities remain firm.
- US ISM Manufacturing PMI, social media platform talks should be followed closely.
AUD/USD fizzles the corrective pullback from 0.7605 around 0.7645, currently near 0.7638, during the early Monday’s trading. The pair’s recent weakness could be traced from weaker-than-expected Chinese data and risk-off mood.
China’s Caixin Manufacturing PMI follows the official readings while declining from 52.7 market consensus to 51.5 in January. During the weekend, China’s official NBS Manufacturing PMI dropped below 51.6 forecast to 51.3 while Non-Manufacturing PMI dropped to 52.4 from 52.6 market consensus.
Read: Chinese Caixin Manufacturing PMI Jan missed: 51.5 vs exp 52.6; prev 53.0, AUD holds
Earlier in the day, Australia’s AiG Performance of Mfg Index rose to 55.3 from 52.1 in January while TD Securities Inflation eased to 0.2% from 0.5% MoM. Further, Australia and New Zealand Banking Group’s (ANZ) Job Advertisement gauge for January eased to 2.3% from 9.2%.
Market sentiment wobbles amid talks over the surge in silver demand and anticipated run-up on the social media platforms like Twitter and Reddit. After wild moves in equities, traders recently have targeted silver prices, up around 5.0% near a six-month high. The same pushed some of the trading avenues like Apmex to reject taking orders of the white metal in anticipation of a regulatory move.
It should be noted that the jump in vaccinations and a commensurate reduction in the coronavirus (COVID-19) cases try to placate the market bears but the EU-UK tussle and Australia’s fresh lockdown, a five-day gig in Perth, challenge the optimists.
Against this backdrop, S&P 500 Futures print 0.30% loss while the US 10-year Treasury yields stay heavy around 1.07% by press time.
Read: S&P 500 Futures drop to one-month low amid market frenzy
Given the lack of remaining data for publishing in Asia, AUD/USD traders should follow market sentiment, which in turn requires buyers to stay cautious. Though, likely weakness in the US ISM Manufacturing PMI, expected 59.5 from 60.3, can trigger consolidation.
Technical analysis
A sustained downside break of six-week-old horizontal support, around 0.7640, directs AUD/USD sellers toward 50-day SMA, at 0.7600 now.
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 drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price holds strength ahead of US core PCE inflation
Gold price holds onto gains near $2,200 in Thursday’s European session. The precious metal exhibits firm footing ahead of the United States core PCE Price Index data for February, which will be published on Friday.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.