FxWirePro: AUD/USD shorts squeezed on China PMI data, pair holds intraday gains
The Antipodean were squeezed higher on Thursday after Chinese manufacturing activity came in better than expected, providing some reprieve The Australian dollar spiked against the USD on the day to hit session highs at 0…
The Antipodean were squeezed higher on Thursday after Chinese manufacturing activity came in better than expected, providing some reprieve
The Australian dollar spiked against the USD on the day to hit session highs at 0.7067, pulling away from a low of 0.6984 touched earlier in the week
Much of the strength came after China's official Purchasing Managers' Index (PMI) inched up to 49.8 in September, a touch better than a forecast of 49.6
Diverging interest rate outlooks between the Fed and RBA also undermining the Aussie
While the Federal Reserve is seen raising rates as early as this year, Australian debt markets are fully priced for an interest rate cut by mid-2016
AUD/USD is currently trading at 0.7061, holding on to intraday gains, sideways consolidation for some time likely, market unlikely to get too bearish ahead of Friday crucial NFP data
Immediate resistance for the pair seen by daily Tenkan at 0.7066 ahead of Kijun at 0.7093, while supports on the downside are located at 0.70 and further below at 0.6980 (Sept 30 lows)
