Chinese HSBC Manufacturing PMI expands , AUDUSD tests resistance !

The Chinese HSBC Manufacturing PMI is one of the strongest Chinese economic indicators that affect the Australian dollar.It measures the level of a diffusion index which based on surveyed purchasing managers in the Chinese manufacturing industry , released on a monthly basis (usually in the 3rd week of the month).

When the PMI is above 50.0 this indicates an expansion of the manufacturing economy , which will increase the demand for raw materials from Australia, boost the Australian economy and therefore lead to a rise in the value of the Australian dollar , and a figure below 50 indicates that the manufacturing economy is declining , which is not good news to the Australian economy as demand for its exports will drop off and lead traders to dump the Australian dollar.

The PMI already released 50.05 above expectations 50.0 few hours ago (1:45)GMT ,  this scenario has pushed the pair for retesting the nearest resistance at the 0.8900 levels, anyway , despite the positive HSBC manufacturing PMI  , the AUDUSD remains bearish , and the pair may recover before the next fall , let’s take a quick look to technical view :

Technical  :

Outlook in AUDUSD remains on the downside as long as resistance 0.8900/0.8950 holds on a daily closing basis , support comes at the 0.8850 levels , losing this levels will continue losses towards the 0.8787 levels a halt is likely , but further losses will aim the 0.8740/0.8659 levels..

On the upside , resistance at the 0.8900 levels ahead of the 0.8950 levels (main) , a clear break of the 0.8950 levels will bring strong recovery towards the 0.9111 levels before the next fall , above 0.9111 will extend recovery towards the 0.9276 levels before the next fall…

In all , as long as 0.8900/0.8950 holds on a daily closing basis , outlook in AUDUSD remains on the downside towards the 0.8850/0.8787 levels , above the 0.8950 will bring recovery towards the 0.9111 levels before the next fall…

Conclusion: The Chinese HSBC Manufacturing PMI is an opportunity to short the AUDUSD on resistance levels after rejection , pay attention to U.S FOMC Member Kocherlakota Speaks today at 18:00 GMT , and  after midnight at 01:30 , RBA Financial Stability Review ….volatility is expected …

 

Chinese HSBC Manufacturing PMI expands , AUDUSD tests resistance levels !

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