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Forex: AUD/USD below 1.04 after disappointing China PMI

FXstreet.com (Barcelona) - AUD/USD breaks a little bit to the downside last at 1.0390 on the back of disappointing China PMI Manufacturing coming out at 50.9 when 52 was expected. Not much of a move though so far, given data is above key 50 figure for sixth consecutive month. China HSBC final PMI Manufacturing data will be next at 01:45 GMT as next risk event of the session.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com, the pair has got “a slightly bearish tone in the hourly chart,” the analyst says, while “In the 4 hours one, price remains below 20 SMA that gains bearish slope above current price, while indicators aim higher still below their midlines,” she notes, adding: “A recovery should extend now above the 1.0440 area to deny the possibility of more slides, while once below the 1.0400 mark, there’s scope for a continuation towards 1.0330 support area,” Valeria suggests.

The analyst locates support levels at: 1.0390, 1.0360 and 1.0330, while resistance levels at: 1.0440, 1.0480 and 1.0520.

China Mar NBS Manufacturing PMI improves to 50.9 vs 50.1

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China PMI comes below expectations

China’s manufacturing PMI rose from 50.1 in February to 50.9 in March, however, the reading was below expectations of 52.00 according to a Reuters poll, and more moderate 51.2 expectations from other industry site. The data, released by the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics, , indicates that growth momentum of the manufacturing sector in China continues to show only mild progress.
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