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22 May 2014
AUD/USD recovers the smile, near 0.9260
FXStreet (Edinburgh) - The Aussie dollar is back to the positive ground on Thursday, lifting the AUD/USD to session highs beyond 0.9270, although currently deflating a tad to 0.9265/60.
AUD/USD boosted by Chinese PMI
The AUD got some much needed oxygen after the Chinese manufacturing PMI sponsored by HSBC surprised investors to the upside in May, coming in at 49.7 vs. 48.1 expected and previous. Further domestic data showed Consumer Inflation Expectations at 4.4% in April, up from March’s 4.2% advance. According to Greg Gibbs, FX Trading Strategist at RBS, commented “AUD has dropped sharply since Tuesday in what appears largely a delayed reaction to weak Chinese monthly activity data for April, weaker iron ore price, a somewhat more dovish tone in recent RBA statements, and a public backlash against the first budget released by the Liberal National coalition government elected in September last year… AUD is yet to show much bounce this week, but it is sitting near key supports just above .9200, and thus it is best to stay on the sidelines awaiting fresh news. We would be inclines to sell strength, but at this stage until nearer .9320”.
AUD/USD key levels
The pair is now up 0.13% at 0.9264 with the next resistance at 0.9276 (50-d MA) followed by 0.9336 (high May 20) and finally 0.9377 (high May 19). On the flip side, a breakdown of 0.9208 (low May 21) would open the door to 0.9172 (200-d MA) and then 0.9155 (low Mar.26).
AUD/USD boosted by Chinese PMI
The AUD got some much needed oxygen after the Chinese manufacturing PMI sponsored by HSBC surprised investors to the upside in May, coming in at 49.7 vs. 48.1 expected and previous. Further domestic data showed Consumer Inflation Expectations at 4.4% in April, up from March’s 4.2% advance. According to Greg Gibbs, FX Trading Strategist at RBS, commented “AUD has dropped sharply since Tuesday in what appears largely a delayed reaction to weak Chinese monthly activity data for April, weaker iron ore price, a somewhat more dovish tone in recent RBA statements, and a public backlash against the first budget released by the Liberal National coalition government elected in September last year… AUD is yet to show much bounce this week, but it is sitting near key supports just above .9200, and thus it is best to stay on the sidelines awaiting fresh news. We would be inclines to sell strength, but at this stage until nearer .9320”.
AUD/USD key levels
The pair is now up 0.13% at 0.9264 with the next resistance at 0.9276 (50-d MA) followed by 0.9336 (high May 20) and finally 0.9377 (high May 19). On the flip side, a breakdown of 0.9208 (low May 21) would open the door to 0.9172 (200-d MA) and then 0.9155 (low Mar.26).