“¢ Better than expected Chinese PMI print helped build on the recent recovery.
“¢ A modest USD uptick remained capped on the back of declining US bond yields.
“¢ Traders now eye US ISM PMI for some impetus ahead of Tuesday’s RBA decision.
The AUD/USD pair extended its steady intraday pullback from three-week tops and was now seen retreating further below mid-0.6900s.
The pair built on its recent recovery from multi-month lows and added to the last week’s modest gains following the release of better than expected Chinese Caixin Manufacturing PMI, coming in at 50.2 for May as against 50.0 expected.
However, a modest US Dollar rebound – though remained capped amid the ongoing slump in the US Treasury bond yields, coupled with persistent US-China trade tensions kept a lid on any strong follow-through up-move for the China-proxy Australian Dollar.
Investors also seemed reluctant to place any aggressive bets ahead of the latest RBA monetary policy update, wherein the central bank is widely expected to cut interest rates. The RBA decision scheduled to be announced on Tuesday and should play an important role in determining the pair’s next leg of a directional move.
In the meantime, Monday’s US economic docket – highlighting the release of ISM manufacturing PMI, will be looked upon for some short-term trading opportunities later during the early North-American session.
Technical levels to watch
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