The preliminary HSBC / Markit Manufacturing PMI rose from 47.7 to 50.1 points. The score is marginally above the 50 point mark, and represents a return to growth and the strongest figures in 4 months. Early expectations stood on a much more modest rise to 48.3 points.
AUD/USD eventually managed to recover, rising above the 0.90 level that it lost after the FOMC Meeting Minutes. However, the Australian dollar remains vulnerable.
The unofficial PMI carries a lot of weight, more than the official number, which was positive also last month. China is Australia’s No. 1 trade partner.
Aussie/USD hardly held on to 0.90 before the release of the FOMC Meeting Minutes. The minutes, while not containing any shocking news, set the trigger for a dollar rally, which was strongly felt in AUD/USD. The pair fell as low as 0.8931 before recovering, with a lot of help from this Chinese figure.
However, after peaking at 0.9022, the pair is on the back foot and under 0.90 once again.
0.90 remains an important battleground, and the new low serves as support, before 88.90. Resistance is at 0.91.
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