China is supportive of AUD

Chinese non-manufacturing PMI climbed to 53.6 (vs 53.5 expected) from 53.2 in April, which is positive new for AUD.


Australia remains closely linked to Chinese economy and AUD is impacted by any news from China. But, over the weekend, Chinese economic news were pretty positive as China's official Manufacturing PMI only fell to 50.6 in May (vs 51.1 expected) from 50.8 in April, while non-manufacturing PMI climbed to 53.6 (vs 53.5 expected) from 53.2 in April.

From a technical point of view, on a daily chart, AUD/USD is supported by a rising trend line and by its 50-day moving average (in blue) as the daily RSI stands within its buying area. Readers may therefore consider the potential for further advance above horizontal support at 0.6410. The nearest threshold would be set at horizontal resistance at 0.6850 and a second one would be set at yearly top at 0.7030 in extension.

Source: TradingView, GAIN Capital

More from Forex

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.