- AUD/USD’s turns positive, extending a recovery from 0.6997.
- China’s PMI beats estimates, indicating a continued recovery in the world’s second-largest economy.
- Equiies may trade choppy ahead of US elections, capping gains in the AUD.
AUD/USD has turned positive following the release of better-than-expected China data.
Released at 01:45 GMT, China’s October Caixin Manufacturing PMI, which surveys small and medium-sized export-oriented units, showed an uptick in the pace of expansion in the manufacturing activity. The index came in at 53.6, beating the expectation of 52.8 and up from the previous month’s print of 53.0.
The China-sensitive AUD, also a commodity dollar, is benefitting from the upbeat PMI number. The currency pair is now trading in the green at 0.7024, having recovered from 0.6997 to 0.7018 ahead of the PMI release.
The recovery from session lows was set in motion likely by the upbeat Aussie data released early Monday. Notably, Australia’s Building Permits surged by 15.4% in September, beating the estimate of a 1.3% rise by a big margin.
Looking ahead, the AUD would continue to gain ground if the global equity markets pick up a bid on signs of continued improvement in the Chinese economy. However, big gains may remain elusive due to the US election uncertainty.
Technical levels
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