Australian Dollar moves little following China’s NBS PMI data
AUD/USD edges higher after opening at a bearish gap, remaining in the negative territory and trading around 0.7160 during the Asian hours on Monday.
Following the release of China's Purchasing Managers' Index (PMI) data, the Australian Dollar (AUD) experienced minimal movement against the US Dollar (USD). The AUD/USD currency pair remained in the negative territory around 0.7160 during the Asian trading hours. China's Manufacturing PMI rose to 49.8 in August, surpassing the market consensus of 49.7 for the same month.
Meanwhile, China's Non-Manufacturing PMI held steady at 49.0 in August, mirroring July's figure. The Australian Dollar's inflation rate rose to 4.8% year-over-year in August, down from 4% in July. However, the monthly inflation rate decreased to 0.5% from the previous month's 1%. Speculation suggests that the US Dollar (USD) may rebound due to hawkish remarks from Federal Reserve chair Kevin Warsh, who indicated that policymakers must address cost-of-living pressures in the United States.
The Federal Reserve's next interest rate decision is scheduled for September 15-16, with a 57.5% chance of a 25 basis point increase according to the CME FedWatch tool. Near-term bullish bias for AUD/USD is supported by short- and medium-term Exponential Moving Averages (EMAs) aligning below price levels. Initial support for AUD/USD is at the nine-day EMA, followed by a more substantial support level at the 50-day EMA.
However, a significant drop may expose the pair to the historically significant support level of 0.6667.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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