AUD/USD remains positive around 0.7060 ahead of China PMI
- Aussie remains upbeat as positive market sentiment joins welcome developments at the US-China trade talks.
- Global risk sentiment stays positive ahead of the key China data.
The AUD/USD pair holds the strength by being around 0.7055 during the early Asian session on Tuesday. The Aussie traders now await the key China purchasing manager index (PMI) data for fresh impulse.
While soft US data joined upbeat start of the week at the equity front, global traders remained positive to the Aussie pair.
The risk sentiment also improved as can be seen through 10-year Treasury yields from the US which gained nearly three basis points to 2.53%.
Coming up next in the traders’ radar is China’s official manufacturing and non-manufacturing PMIs followed by private industry survey release, namely Caixin manufacturing PMI.
Official manufacturing PMI is expected to remain unchanged at 50.5, its Caixin counterpart may rise to 51.0 from 50.8. Alternatively, the official non-manufacturing PMI could soften to 54.5 from 54.8.
The US is also up for releasing Chicago PMI, pending home sales and consumer confidence with the forecast suggesting upbeat outcomes.
The latest development from the trade negotiation between the US and China says that both the world’s largest economies are on the final laps of talks. However, the US recently announced duties on China’s yarn imports.
Technical Analysis
A successful break of 0.7055-60 seems necessary for the pair to aim for 50-day simple moving average (SMA) figure of 0.7105 and the 100-day SMA mark near 0.7125.
On the downside, 0.7030 and an upward sloping trend-line since January 04 can challenge sellers near 0.7005/0.7000, a break of which highlights 0.6980 and 0.6910 supports.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
