AUD/USD steadies near mid-0.6500s after weak China PMI data
The post AUD/USD steadies near mid-0.6500s after weak China PMI data appeared on BitcoinEthereumNews.com.
The AUD/USD pair kicks off the new week on a subdued note in reaction to unimpressive China’s official PMIs released over the weekend, though the downside remains cushioned. Spot prices currently trade just below mid-0.6500s, near a two-week top touched on Friday, and seem poised to build on the recent strong move up witnessed over the past week or so. The National Bureau of Statistics’ survey showed on Sunday that China’s official Manufacturing PMI remained below the 50.0 mark, in the contraction territory, for the eighth month in November. Adding to this, China’s Non-Manufacturing PMI fell from 50.1 in the previous month to 49.5, marking the lowest reading since December 2022 and the first contraction in nearly three years. The immediate market reaction, however, turns out to be short-lived amid easing trade tensions and the recent government measures announced to boost consumption in the world’s second-largest economy. This, along with diminishing odds for more policy easing by the Reserve Bank of Australia (RBA), acts as a tailwind for the Aussie amid a weaker US Dollar (USD). The USD Index (DXY), which tracks the Greenback against a basket of currencies, languishes near a two-week low amid the growing acceptance that the Federal Reserve (Fed) will lower borrowing costs again this month. Apart from this, the underlying bullish sentiment in the financial markets undermines the safe-haven buck and should benefit the riskier AUD/USD pair. Even from a technical perspective, Friday’s breakout through the 100-day Simple Moving Average (SMA) backs the case for a further near-term appreciating move. Traders, however, seem reluctant to place aggressive bets and opt to wait for this week’s important US macro releases, scheduled at the start of a new month, starting with the ISM Manufacturing PMI later today. Economic Indicator NBS Non-Manufacturing PMI The NBS Non-manufacturing Purchasing Managers…
