Home Forex AUD/USD ignores China PMI data ahead of RBA rate move

AUD/USD ignores China PMI data ahead of RBA rate move

by Jonathan Adams
AUD USD

China’s Caixin Services PMI differs from the Caixin Manufacturing PMI while rising to 54.3 versus 51.7 market consensus and 51.5 previous readings

AUD/USD pauses pullback from intraday top of 0.7662 around 0.7650 during early Tuesday. In doing so, the Aussie pair takes clues from China’s Caixin Services PMI data for March but cautious sentiment ahead of the Reserve Bank of Australia (RBA) probes the recovery moves.

China’s Caixin Services PMI differs from the Caixin Manufacturing PMI while rising to 54.3 versus 51.7 market consensus and 51.5 previous readouts. Earlier in the day, Australia’s March month ANZ Job Advertisements grew past-7.2% prior (revised to 8.8% afterward) to 7.4%.

Other than the wait for the RBA, the shift in the market sentiment also challenges AUD/USD upside. The market seems to consolidate the previous day’s gains as the latest recent headlines from the UK and Japan tests the optimism. Among them, the UK’s signals to restrict the AstraZeneca vaccine for young people join Japan’s fears of a rate cut and the probable economic imbalances.

On the contrary, New Zealand’s opening of national borders with Australia and recovering coronavirus (COVID-19) conditions at home test the bears.

Amid these plays, S&P 500 Futures ease 0.10% intraday from the record top, flashed the previous day, to 4,064. Though, the US 10-year Treasury yields drop below 1.70%, down 3.4 basis points (bps).

After witnessing the initial reaction to the upbeat activity numbers from Australia’s biggest customer, AUD/USD traders will keep their eyes on the Reserve Bank of Australia’s (RBA) monetary policy meeting decision for fresh impulse.

It’s worth mentioning that the economic calendar lacks any major data/events, except for the RBA monetary policy, which in turn could favour the short-term counter-trend traders.



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