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1 Sep 2015
AUD/USD mixed on first round of Chinese data; RBA coming up
FXStreet (Guatemala) - AUD/USD is mixed on the back of the first round of Chinese data and ahead of the RBA decision later on, with a 10 pip bid on the release and was paired back in the same short time frame.
The official NBS Manufacturing PMI for August was expected at 49.7% vs 50% in July and arrived at inline with expectations, but still below the key 50 level.The Non Manufacturing PMI for the same period came in at 53.4 vs 53.9.
Later in the day we will have the more important final Caixin August PMI expected at 47.1 flash reading and Australian building permits will be released beforehand.
AUD/USD and the RBA meeting
In respect of the RBA meeting and decision, most economists are expecting the Stevens to hold off against a backdrop of mostly positive data from the Australian economy of late and a further weakening of the Aussie since the last meeting of 2.9% and relatively stable iron ore prices along with a better-than-expected jobs report.
RBA meeting and China
However, China will be a concern and the statement will be key and likely to be on the dovish side. But it is not all lost for China, which may be appreciated by the RBA and according to analysts at Danske Bank, that when it comes to China, they believe it has the tools needed to avoid a hard landing and orchestrate a slow recovery in H2.
AUD/USD risks remains to the downside
The pair is trading below the 0.7293 3-month resistance line still and this is pressuring the pair, much to the RBA's delight. Hourly MACD is back into positive territory, while rallies may find tough resistance on the 0.72 handle and ahead of R2 and R3 (0.7250/0.7301). The pair remains with a bearish bias while changing hands below 0.7448 July 21 high and the 50 DMA at 0.7393.
The official NBS Manufacturing PMI for August was expected at 49.7% vs 50% in July and arrived at inline with expectations, but still below the key 50 level.The Non Manufacturing PMI for the same period came in at 53.4 vs 53.9.
Later in the day we will have the more important final Caixin August PMI expected at 47.1 flash reading and Australian building permits will be released beforehand.
AUD/USD and the RBA meeting
In respect of the RBA meeting and decision, most economists are expecting the Stevens to hold off against a backdrop of mostly positive data from the Australian economy of late and a further weakening of the Aussie since the last meeting of 2.9% and relatively stable iron ore prices along with a better-than-expected jobs report.
RBA meeting and China
However, China will be a concern and the statement will be key and likely to be on the dovish side. But it is not all lost for China, which may be appreciated by the RBA and according to analysts at Danske Bank, that when it comes to China, they believe it has the tools needed to avoid a hard landing and orchestrate a slow recovery in H2.
AUD/USD risks remains to the downside
The pair is trading below the 0.7293 3-month resistance line still and this is pressuring the pair, much to the RBA's delight. Hourly MACD is back into positive territory, while rallies may find tough resistance on the 0.72 handle and ahead of R2 and R3 (0.7250/0.7301). The pair remains with a bearish bias while changing hands below 0.7448 July 21 high and the 50 DMA at 0.7393.