We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • the term 'parabolic' may be in use quite a bit over the next few days/weeks with what's been going on in $TSLA $AMZN and now $SHCOMP https://t.co/LXXfi0duOk
  • The $USDCNH has aligned to the Chinese Index's rally. Here is the exchange rate overlaid with the SPX-SHCOMP ratio and a 10-day (2 week) correlation coefficient between the two is below: https://t.co/fTPQ6LaZts
  • This has been an interesting move: the Shanghai Composite ($SHCOMP) has posted its largest 5-day rally since Dec 8, 2014 while other risk benchmarks globally have somewhat spun their tires https://t.co/FJdBNuhlOW
  • 🇷🇺 Foreign Exchange Reserves (JUN)Actual: $568.9BPrevious: $566.1Bhttps://fxnews.org/?/economic-calendar#2020-07-07
  • Heads Up:🇺🇸 Fed Bostic Speech due at 13:00 GMT (15min)https://fxnews.org/?/economic-calendar#2020-07-07
  • Heads Up:🇷🇺 Foreign Exchange Reserves (JUN) due at 13:00 GMT (15min)Previous: $566.1Bhttps://fxnews.org/?/economic-calendar#2020-07-07
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/Aj51jJraPw
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.37%, while traders in NZD/USD are at opposite extremes with 72.78%.See the summary chart below and full details and charts on FxNews: https://fxnews.org/?/sentiment https://t.co/l8kBNxbrIK
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.37%, while traders in NZD/USD are at opposite extremes with 73.40%.See the summary chart below and full details and charts on FxNews: https://fxnews.org/?/sentiment https://t.co/104D8ytLwb
  • BNP Paribas sees Brent crude oil averaging $44/bbl in 2020 and $59/bbl in 2021
Australian Dollar, S&P 500 Gain on Upbeat China PMI. Resistance Next?

Australian Dollar, S&P 500 Gain on Upbeat China PMI. Resistance Next?

2020-06-30 01:30:00
Daniel Dubrovsky, Analyst
Share:

Australian Dollar, AUD/USD, S&P 500, China PMI - Talking Points

  • Australian Dollar, S&P 500 futures gain on upbeat China PMI data
  • Recovery from world’s largest economy bodes well for global growth
  • AUD/USD may be restrained by descending resistance as it ranges

The pro-risk Australian Dollar received a cautious boost, alongside S&P 500 futures, as a group of official Chinese PMI data crossed the wires. Manufacturing PMI clocked in at 50.9, slightly higher than the 50.5 estimate. The non-manufacturing statistic printed at 54.4, again higher than the 53.6 consensus. With PMI readings, values above 50 indicate growth in the reported sector and vice versa.

Introduction to Forex News Trading
Introduction to Forex News Trading
Recommended by Daniel Dubrovsky
What does it take to trade around data?
Get My Guide

With the Reserve Bank of Australia unlikely to act on adjusting interest rates amid heightened coronavirus cases in the US and locally, the importance of the data for AUD/USD likely has more to do with its broader implications for global growth. China is also of course Australia’s largest trading partner and economic activity in the former often implies knock-on effects for the latter.

On the chart below is the Citigroup economic surprise index tracking China overlaid with the Australian Dollar. The former measures data outcomes relative to economists’ expectations. Values increasingly above 0 indicate outcomes tending to surprise above estimates and vice versa. Since the Aussie bottomed in March, it rallied in tandem with the swift recovery from the world’s largest economy.

Since the beginning of this month however, China seems to be struggling to find further momentum in rosy data surprises. Today’s readings could help reinvigorate that trend, potentially boding well for the Australian Dollar. Downside risks remain though. The United States has seen cases reach daily record levels of late. The state of Arizona just closed bars, gyms and movie theaters for 30 days. More of the same could sink growth.

Discover your trading personality and optimal forms of market analysis

AUD/USD Versus Aggregate China Data Performance

Australian Dollar, S&P 500 Gain on Upbeat China PMI. Resistance Next?

Chart Created in TradingView

Australian Dollar Technical Analysis

From a technical standpoint, the Australian Dollar remains in a congestive setting since AUD/USD topped at the beginning of June. Key support sits immediately below at 0.6777 – 0.6840. There might be descending resistance forming from the June 10 high – red line on the daily chart below.

This trend line could risk accelerating AUD/USD’s top given confirmation of a breakout below support. That would expose the 0.6685 – 0.6646 inflection range. Otherwise, uptrend resumption entails taking out 0.7015 – 0.7064 which would open the door to testing the July 2019 high.

AUD/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 10% -5% -1%
Weekly -16% 13% 1%
What does it mean for price action?
Get My Guide

AUD/USD Daily Chart

Australian Dollar, S&P 500 Gain on Upbeat China PMI. Resistance Next?

Chart Created in TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for FxNews.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

FxNews provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.