AUD/USD holds weaker after disappointing Chinese PMI data earlier
Risk assets isn’t offering much help to commodity currencies so far today but the aussie is the main mover after it got a nudge lower following weaker-than-expected Chinese PMI data for April earlier today.
The details in the manufacturing print weren’t too bad as it showed that new export orders rose (still in contraction territory though) but the fact that other areas declined is reason enough not to get too optimistic of a potential growth rebound just yet.
As for AUD/USD, the pair slipped from around 0.7069 to a low of 0.7034 on the back of the releases earlier. Buyers did however lean on support from the 100-hour MA (red line), preventing the near-term bias from turning more bearish.
That will be the key line in the sand to for sellers to chase a move towards the 0.7000 handle once again in the session ahead. There isn’t much on the risk agenda today but perhaps Eurozone Q1 growth data may offer something for aussie traders to focus on – global growth sentiment – after the Chinese data earlier; Apple earnings also an area to watch.
But technically speaking, AUD/USD sits in no man’s land for now as the pair tracks between the two key hourly moving averages with upside bias capped by the 200-hour MA (blue line) @ 0.7085 at the moment.