The AUD/USD Waits on Chinese PMI
Rowan Crosby • 1 min read
The AUD/USD has been grinding its way lower over the holiday period and today we get a look at some Chinese data which might add some short-term volatility.
China release its private PMI number and this comes on the back of a weaker manufacturing result that we saw released on Sunday.
Markets are looking at 50.3 and if we miss again, then proxy plays like the AUD/USD could well sell-off.
The other data out today from Australia was property prices and it has come as no surprise that we have seen some more declines across the country.
The property sector is incredibly weak at the moment and the RBA is in a tough position, in that if it hikes rates, then that will surely dent property values even further.
At the same time, a survey of economists has suggested that they think the next rate hike will be up, but not until 2020 now. So that is a further push back as many felt that 2019 might be the year for our first hike.
0.7000 is clearly the major level below which is in-play on a weak Chinese number.
While 0.7200 is probably the strongest resistance level above, but of course we need to watch all the round number levels.