1 Aug 2013
China PMI next: Impact on the AUD/USD
FXstreet.com (Barcelona) - The Chinese PMI is set to be published in less than 1 hour, with all eyes on the Australian Dollar, as the rate recently broke through the 'no longer impregnable' support at 0.90.
At 0100GMT the intriguing number on China Manufacturing PMI for July, which is expected at 49.8 vs 50.1 prior, will be revealed, and the Aussie initial performance will undoubtedly be a direct proxy of the result.
In view of Sean Callow, FX Strategist at Westpac, ". Expectations are quite gloomy, with a median forecast of 49.8, which would be the lowest reading since Sep 2012. June’s headline was 50.1. The final reading on the HSBC/Markit PMI is due 45 min later but should have little impact."
A downbeat number in the NBS China PMI will see clear downward pressure on the Aussie, potentially breaking through 0.8950 as it continues its course toward next relevant tech target at 0.8860. A rosier outlook on the PMI, and expect the Aussie to retest 0.90/0.9010 resistance, where supply has been created.
At 0100GMT the intriguing number on China Manufacturing PMI for July, which is expected at 49.8 vs 50.1 prior, will be revealed, and the Aussie initial performance will undoubtedly be a direct proxy of the result.
In view of Sean Callow, FX Strategist at Westpac, ". Expectations are quite gloomy, with a median forecast of 49.8, which would be the lowest reading since Sep 2012. June’s headline was 50.1. The final reading on the HSBC/Markit PMI is due 45 min later but should have little impact."
A downbeat number in the NBS China PMI will see clear downward pressure on the Aussie, potentially breaking through 0.8950 as it continues its course toward next relevant tech target at 0.8860. A rosier outlook on the PMI, and expect the Aussie to retest 0.90/0.9010 resistance, where supply has been created.