- AUD/NZD sees little action post-China data release.
- China’s Caixin Manufacturing PMI bettered estimates.
- Aussie data missed expectations.
The AUD/NZD pair has barely moved in response to the better-than-expected China manufacturing data released soon before press time.
China Caixin Manufacturing PMI for May came in at 50.2, beating the expected print of 50. The previous month’s print was left unrevised at 50.2.
Caixin’s PMI mainly focuses on the small and medium-sized export-oriented units. As a result, an above 50 PMI reading could be considered a sign the global demand is holding well despite escalating trade tensions. So far, however, the PMI data has failed to put a bid under the AUD, a proxy for China.
The pair is currently trading at 1.0610, having hit a high and low of 1.0625 and 1.0603, respectively, earlier today.
Looking forward, the currency pair may remain on the defensive, having faced rejection at the 200-day moving average (MA) of 1.0625 earlier today. The key MA has been capping upside since May 29.
Also, the Aussie data released earlier today were weaker-than-expected. For instance, company’s Gross Profits rose 1.7% quarter-on-quarter in the first three months of 2019, missing the estimate of a 3 % rise and down from the upwardly revised preceding quarter’s print of 2.8%. Further, the ANZ Job Advertisements fell 8.4% in May.
That said, the news that the US President Trump has rejected tariffs on Australia may push up the AUD.
Pivot levels
Share
