AUD/USD trims losses on upbeat China services PMI

China November services PMI came-in at a five-year high of 53.8.
The Aussie dollar - proxy for China - has trimmed losses after China PMI release, but is still down 0.35 percent on the day.
Aussie government bond yields remain depressed and will keep Aussie in the red.

Omkar Godbole FXStreet Contributor

The AUD/USD pair is currently trading at 0.7313 - down 0.35 percent on the day - having clocked a low of 0.7295 earlier today.

The currency pair has trimmed losses, possibly on the back of China November services PMI, which came in at 53.8, beating the forecasted print of 50.8 by a big margin.

While the upbeat China data have helped Aussie recovery from session lows, the Australian government bond yields are still depressed. For instance, the 10-year government bond yield is currently trading 2.5 percent - down four basis points on the day - having clocked a 13-month low of 2.48 percent earlier today.

More importantly, the yields are likely to remain in the red as the Australia's growth rate slowed sharply in the third quarter, reinforcing expectations that the Reserve Bank of Australia is unlikely to hike rates before the second half of 2020.

As a result, AUD/USD may have a tough time recovering all the way back to a session high of 0.7356.

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.7312
    Today Daily change: -24 pips
    Today Daily change %: -0.327%
    Today Daily Open: 0.7336
Trends:
    Previous Daily SMA20: 0.7267
    Previous Daily SMA50: 0.7184
    Previous Daily SMA100: 0.7242
    Previous Daily SMA200: 0.7419
Levels:
    Previous Daily High: 0.7394
    Previous Daily Low: 0.7326
    Previous Weekly High: 0.7345
    Previous Weekly Low: 0.7199
    Previous Monthly High: 0.7345
    Previous Monthly Low: 0.7072
    Previous Daily Fibonacci 38.2%: 0.7352
    Previous Daily Fibonacci 61.8%: 0.7368
    Previous Daily Pivot Point S1: 0.731
    Previous Daily Pivot Point S2: 0.7284
    Previous Daily Pivot Point S3: 0.7242
    Previous Daily Pivot Point R1: 0.7378
    Previous Daily Pivot Point R2: 0.742
    Previous Daily Pivot Point R3: 0.7446

Author

Omkar Godbole

FXStreet Contributor

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

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