Australia is set to disclosure the preliminary estimates of the October Commonwealth Bank of Australia and Markit Economics Manufacturing and Services Purchasing Managers’ PMI in the upcoming minutes. Both indexes are expected below September ones, at 49.0 and 52.2, respectively. There is no forecast for the Composite PMI, although the previous reading stands at 52.
Although the expected declines are slight, they could anyway have a negative impact of AUD/USD, as the Australian economy is hanging by a thread, with the persistent menace of the RBA taking the main benchmark rate down to 0.0%.
Given that the pair has managed to close the day with gains, in spite of the ongoing dismal mood, upbeat reports can take it up to the 0.6900 region before bears jump back in.
According to Valeria Bednarik, FXStreet Chief Analyst, “the AUD/USD pair is neutral in the short-term, as, in the 4 hours chart, it continues developing below a flat 20 SMA, while technical indicators hold directionless around their midlines. Nevertheless, the dollar’s broad weakness favors a recovery during the upcoming hours, which will likely depend on data. A key resistance comes at 0.6900, with large stops suspected above it.”
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