- Australian Retail Sales missed the mark, but even-handed China PMI data recovers Pacific market sentiment.
- China Caixin Manufacturing PMI clocks in at 50.6, cautiously down from the previous 50.8.
The AUD/NZD took a header after Australia’s Retail Sales figures failed to match expectations, coming in at a disappointing reading of 0.0%, but a secure printing for China’s Caixin Manufacturing PMI sees the AUD in recovery mode.
Australia’s Retail Sales failed to hit the expected reading of 0.3%, coming in even further below the previous showing of 0.5%, sending the AUD/NZD pairing down into 1.0860, but an as-expected reading for China’s PMI sees the pair back near Monday’s current highs, testing into 1.0885.
Bullish momentum is unlikely to develop for the AUD on the back of China’s Caixin PMI, however: the indicator, despite hitting the expected 50.6, still declined slightly, stepping down from the previous period’s 50.8, and economic tensions in the Asian theater continue to rise. With data from Australia continuing to disappoint, a continuation of recent bearish swings is likely to remain on the cards.
AUD/NZD levels to watch
The Aussie-Kiwi faceoff pair is still sharply off of August’s highs of 1.1175, and support remains nearby but thinning, with July’s bottom at 1.0840 being the only thing in the way of an extended decline into 2018’s last major swing low of 1.0660.
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