- Data from China show signs of recovery in economy.
- Greenback starts new week on back foot ahead of PMI data.
- RBA is set to publish its monetary policy meeting on Tuesday.
The AUD/USD pair traded in a tight range during the Asian session after the upbeat data from China helped the AUD stay resilient against its major rivals despite the disappointing PMI readings. With the USD staying under modest selling pressure during the European trading hours, however, the pair advanced to its fresh daily high of 0.6899. As of writing, the pair was a couple of pips below that level, adding 0.3% on the day.
Commonwealth Bank’s Manufacturing PMI came in at 49.4 in December’s preliminary reading to show ongoing contraction in the manufacturing sector’s economic activity. On the other hand, Industrial Production and Retail Sales in China, Australia’s biggest trading partner, increased more than expected in November to offset the potential impact of dismal Australian data on the AUD.
Eyes on US PMI data
On the other hand, the US Dollar Index retraced Friday’s rally on Monday as investors continue to assess the US-China phase-one trade deal and what that it means for the economy. Later in the session, the IHS Markit’s Manufacturing and Services PMI data from the US will be watched closely by market participants. Especially the current state of the manufacturing sector, which has been a source of concern in 2019, could trigger a noticeable market reaction.
During the Asian session on Thursday, the Reserve Bank of Australia will publish the minutes of its latest monetary policy meeting.
Technical levels to watch for
Share
