Forex: AUD/USD falls 100 pips and erases weekly gains, at 1.0282

FXstreet.com (Barcelona) - The AUD/USD is plunging since the publication of US weak ADP employment, from 1.0350, and as went as low as 1.0275 low, falling by 100 pips on the day. The cross is currently trading at 1.0282, Friday’s close, which means it has fully retraced this week’s gains. The US ADP employment report came in lower than expected, at 119K in April instead of the 150K expected, also with the March figure being revised lower from 158K to 131K. Investors will now be eyeing the FOMC meeting.

China’s PMI below the 51.0 consensus, easing to 50.6 in April from 50.9 in March, didn’t help the AUD mood either: “The details reveal steady indices for output and raw material inventories, but broad based declines across other components, with the biggest fall recorded in input prices (-10.5pt). At face value, today’s PMI suggests ~7¾% growth in Q2, a similar pace to Q1 and consistent with our view that China’s growth will print sub-8% GDP for 2013”; wrote TD Securities analyst Alvin Pontoh.

The April update of the ISM manufacturing PMI dropped from 51.3 to 50.7, disappointing investors by coming below market consensus of 50.9. ISM prices paid fell from 54.5 to 50.0, below 53.0 consensus.

“In the medium-term, AUD/USD is moving within the horizontal range defined by the support at 1.0177 (25/07/2012 low) and the resistance at 1.0613 (09/08/2012 high). The direction of the break of this range is expected to give the next medium-term trend”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet.