AUD/USD respects no change in China’s Manufacturing PMI
- AUD/USD ignores downbeat prints of China’s Non-Manufacturing PMI.
- China’s official activity numbers flashed mixed signals with the headline numbers staying unchanged while services gauge staying below forecasts.
- Nearness to the US-China trade deal signing in ceremony pleases buyers.
AUD/USD shrugs off China’s December month activity numbers while taking rounds to 0.7000 amid early Tuesday.
China’s December month PMIs fail to offer any clear direction as the headlines NBS Manufacturing PMI stood unchanged at 50.2 versus 50.1 forecasts while Non-Manufacturing PMI slipped below 53.6 expected to 53.5 earlier. Despite the headline data from a key customer, AUD/USD shows a less reaction as Australian markets are closed for the day and the data have failed to offer any strong momentum in key activities.
Read: China's NBS Manufacturing PMI prints above 50 for a second month in a row
A cautious optimism surrounding the US-China trade relations, mainly due to the weekend headlines, escalated the Aussie pair’s run-up during the week’s start. Though, major attention was given to the latest South China Morning Post (SCMP) headlines suggesting the trade visit by a delegation from Beijing which will be led by the chief trade negotiator, Vice Premier, Liu He.
It’s worth mentioning that Bloomberg recent rang an alarm for flash crash risk for markets as markets in Japan are closed for a six-day New Year break. This could have a negative impact on the Aussie as it is mostly considered as a barometer to the market’s risk tone.
As per current readings, the US 10-year treasury yields stay mostly positive around 1.89% while S&P 500 Futures mark mild gains around 3,225.
Following the release of China’s PMIs, markets have now entered the phase of sparse trading amid off at Japan, Australia and New Zealand. However, the US Housing and consumer sentiment data can entertain investors before New Year’s Eve.
Technical Analysis
While highs marked on May 07 and July, around 0.7050 can keep luring the buyers beyond 0.7000, a sustained downside can revisit December 13 top of 0.6940 and November high surrounding 0.6930.