- AUD/USD remains pressured around one week low, fades bounce off intraday low of late.
- China Caixin Manufacturing PMI for March ease to 50.0 versus 51.7 expected and 51.6 prior.
- Australia Building Permits for February prod AUD/USD sellers.
- Sour sentiment, pre-NFP anxiety joins dovish bias for RBA to weigh on the Aussie pair.
AUD/USD struggles to overcome intraday losses as the latest statistics from China and Australia join sour sentiment during early Monday. That said, the Aussie pair holds lower ground near 0.6665 by the press time amid fears of RBA’s dovish hike and softer US data surrounding activities and employment.
That said, China’s Caixin Manufacturing PMI for March drops to 50.0 from 51.6 prior and 51.7 market forecasts.
Further, Australia’s TD Securities Inflation eased to 0.3% MoM and 5.7% YoY for March versus 0.4% and 6.3% respective priors, which in turn joins the previous week’s downbeat inflation and Retail Sales figures from the Pacific major to strengthen the dovish bias for the Reserve Bank of Australia’s (RBA) next move.
Earlier in the day, news surrounding the OPEC+ output cut weighed on the sentiment and the AUD/USD prices as less energy output suggests a further increase in the Oil price and more pressure on Inflation.
It's worth observing that the CME’s FedWatch Tool recently suggests an increase in the hawkish bias for the Federal Reserve’s (Fed) 0.25% rate hike in May, versus less than 50% chances supporting the event seems in the last week., which in turn weigh on the AUD/USD prices.
Given the risk-off mood and mixed signals, AUD/USD pair may remain pressured around the short-term key support line. However, Monday’s US ISM PMI and Tuesday’s RBA Interest Rate Decision will be the key event for the Aussie pair traders to watch for clear directions.
Also read: AUD/USD approaches 0.6670 key support with eyes on RBA, US NFP
Technical analysis
Recently steady RSI (14) and bullish MACD signals join a three-week-old ascending support line to challenge AUD/USD bears near 0.6670, a break of which can direct AUD/USD bears towards the previous monthly low surrounding 0.6560. Meanwhile, recovery remains elusive unless crossing the 200-DMA hurdle of near 0.6750 by the press time.
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