- AUD/USD pokes intraday high while consolidating the previous day’s losses.
- China NBS Manufacturing PMI, Non-Manufacturing PMI rose past forecast and prior readouts in March.
- Risk-off mood catches a breather ahead of US infrastructure plan.
AUD/USD remains firm above 0.7600, up 0.19% intraday at 0.7613, during Wednesday’s Asian session. In doing so, the aussie pair probes intraday high while also reversing the previous day’s losses.
Although strong readings of China’s official activity numbers for March could be traced as the key catalyst behind the latest run-up, AUD/USD also benefits from the recent risk-on mood that looks to further US stimulus and faster vaccinations.
China’s NBS Manufacturing PMI rose past-51.2 forecast to 51.9, versus 50.6 prior, whereas Non-Manufacturing PMI crossed 51.4 previous reading and 52.6 market expectations with 56.3 level.
Market sentiment also consolidates the latest weakness on the headlines suggesting likely benefits of US President Joe Biden’s multi-billion-dollar infrastructure plan. Additionally, hopes that the US and Iran can restart talks over the nuclear clear offer extra support to the recent risk-on mood.
Even so, chatters surrounding the UK’s push to get tough on China and the US dislike for Beijing’s role in Hong Kong politics seem to weigh on the mood. Furthermore, the coronavirus (COVID-19) resurgence in Europe and Australia, as well as allegations on Russia for stealing thousands of the US State Department documents online.
Amid these plays, S&P 500 Futures print 0.20% intraday gains while parting ways from the Wall Street benchmarks’ performance on Tuesday. It should be noted though that the US 10-year Treasury yield stays firm at around 1.72% after rising to the fresh high since January 2020 the previous day.
While risk catalysts are likely to be the key for AUD/USD traders ahead of US President Joe Biden’s stimulus plan briefing, US ADP Employment Change for March, expected 500K versus 117K, can also offer intermediate directions.
Read: ADP Private Payrolls March Preview: Consumers look to an early spring?
Technical analysis
Although AUD/USD bulls are less likely to be convinced below 0.7700 immediate resistance, the pair’s further downside will be tough before breaking the 0.7562-57 horizontal area including lows marked since December 28, 2020.
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