AUD/USD: Australia’s AiG performance of manufacturing index rose in May

AUDUSD

AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 3.48% against the USD and closed at 0.6664 on Friday.

Elsewhere in China, Australia’s largest trading partner, China’s non-manufacturing PMI climbed to 53.6 in May, compared to a reading of 53.2 in the prior month. On the other hand, the NBS manufacturing PMI unexpectedly dropped to 50.6 in May, defying market expectations for a rise to a level of 51.0 and compared to a reading of 50.8 in the previous month.

LME Copper prices rose 1.0% or $54.0/MT to $5,332.5/MT. Aluminium prices climbed 1.0% or $14.5/MT to $1,515.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.6736, with the AUD trading 1.08% higher against the USD from Friday’s close.

Overnight data showed that Australia’s AiG performance of manufacturing index rose to 41.6 in May, compared to a reading of 35.8 in the previous month. Additionally, the Commonwealth Bank manufacturing PMI dropped to 44.0 in May, less than market consensus for a drop to a level of 42.8 and compared to a revised reading of 44.1 in the previous month.

Elsewhere in China, Australia’s largest trading partner, China Caixin manufacturing PMI advanced to 50.7 in May, more than market expectations for a rise to a level of 49.6 and compared to a reading of 49.4 in the previous month.

The pair is expected to find support at 0.6656, and a fall through could take it to the next support level of 0.6576. The pair is expected to find its first resistance at 0.6779, and a rise through could take it to the next resistance level of 0.6822.

Looking forward, traders would keep a watch on Australia’s current account balance for 1Q 2020, slated to release overnight.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

This entry was posted in AUD/USD. Bookmark the permalink.

Comments are closed.