1 May 2014
AUD/USD to be driven by China PMI - Arab Bank
FXStreet (Bali) - David Scutt, Treasury Dealer at Arab Bank, notes that price action in the AUD/USD during Asia today will be driven by the Chinese manufacturing PMI, with 0.93 exposed on an upbeat print.
Key Quotes
"Despite a positive Fed, strong US private-sector hiring and large drop in the spot iron ore price, the AUDUSD has produced another Teflon-like performance overnight with the pair touching a high of .9301 before easing modestly into the close."
"While that was more than likely a consequence of the late ramp-up in US equities, something more akin to window-dressing rather than anything fundamental, direction today will be driven by the Chinese manufacturing PMI print that arrives at 1 GMT with a reading at-or-above forecast (50.5), something that will indicate further stabilisation in activity, likely to see the Aussie break through selling resistance located above .9300. Conversely, should the PMI reading miss, it, along with the steep fall in commodity prices overnight, should act as a drag on the pair in the latter parts of the session."
"Support is located at .9283, .9250-60 and again at .9228 with resistance kicking in at .9301, .9317 and at .9350."
Key Quotes
"Despite a positive Fed, strong US private-sector hiring and large drop in the spot iron ore price, the AUDUSD has produced another Teflon-like performance overnight with the pair touching a high of .9301 before easing modestly into the close."
"While that was more than likely a consequence of the late ramp-up in US equities, something more akin to window-dressing rather than anything fundamental, direction today will be driven by the Chinese manufacturing PMI print that arrives at 1 GMT with a reading at-or-above forecast (50.5), something that will indicate further stabilisation in activity, likely to see the Aussie break through selling resistance located above .9300. Conversely, should the PMI reading miss, it, along with the steep fall in commodity prices overnight, should act as a drag on the pair in the latter parts of the session."
"Support is located at .9283, .9250-60 and again at .9228 with resistance kicking in at .9301, .9317 and at .9350."