- A weaker-than-expected China services PMI has not had any impact on the AUD (a proxy for China).
- AUD/USD could find bids if the oversold Chinese Yuan shows signs of life.
The AUD/USD is in stasis above 0.74, witnessing little action post an early release of the Chinese PMI numbers.
The non-manufacturing PMI came in at 54.00, a touch softer than June’s print of 55.00, indicating the pace of expansion in the service sector activity slowed in July. The composite number also dropped to 53.6 in July from the previous month’s print of 54.4.
However, the Aussie dollar is not showing any signs of stress and could post gains if the oversold Chinese Yuan picks up a bid. Further, the Australian currency may find takers if the building permits (June) figure, scheduled for release at 01:30 GMT, beats estimates by a big margin.
AUD/USD Technical Levels
Resistance: 0.7460 (50-day moving average), 0.7494 (50% Fib R of June 6 high – July 2 low), 0.7549 (100-day moving average).
Support: 0.7370 (July 27 low), 0.7318 (July 20 low), 0.7310 (July 2 low).