China continues chugging along according to an independent measure and the RBA is in “no worries” mode.
AUD/USD enjoyed a nice rise and hit resistance. However, for a second time in a row, it was unable to break higher, and eventually returned to range.
The Caixin Manufacturing PMI advanced from 48.3 to 48.6 points, better than expected. While the official manufacturing PMI from the Chinese government slipped a bit to 49.6, this was dismissed, especially as the non-manufacturing PMI rose to 53.6 points.
The Reserve Bank of Australia left policy unchanged as widely expected. Regarding the Australian dollar, they said that the A$ is adjusting to declines in commodity prices. Inflation is low and is likely to remain low. The already low interest rates are supporting lending.
Policy could be further eased if needed, but there doesn’t seem to be in any rush.
Earlier, Australia reported a rise of 3.9% in building approvals, better than expected. The current account missed with a deficit of 18.1 billion. GDP data awaits us tomorrow.
All this was enough for another attempt on 0.7280, with a high of 0.7283 reached. But this didn’t last. The pair does maintain a higher range and is sitting at 0.7260, above 0.7220, but isn’t moving higher.
More: AUD/USD: Consolidation Within A Triangle – SocGen
Share
