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AUD/JPY prints session high above 67.00 on above-forecast China PMI

  • Above-forecast China PMI strengthened the bid tone around the Aussie dollar. 
  • AUD/JPY added more than 25 pips to hit a session high of 67.05.
  • Upbeat China data may revive risk sentiment and power further gains in AUD/JPY.

AUD/JPY clocked session highs above 67.00, extending the recovery from session lows near 65.99 after China data bettered estimates. 

Manufacturing PMI beats estimates

The NBS manufacturing PMI for March came in at 52.00, beating the forecasted figure of 45 by a big margin and up from February's 35.7. The NBS PMI mainly focuses on state-owned enterprises. 

The Non-Manufacturing also bettered estimates of 37.8 by a big margin by printing at 52.3. A reading above 50 indicates expansion. 

With the government's PMIs returning to levels above 50, the bid tone around the Aussie dollar strengthened, pushing the AUD/JPY higher from 66.75 to 67.05. 

Looking forward, the pair may continue to gain altitude as the big beat on the Chinese PMI will likely bring cheer to the global equity markets and weaken the demand for the safe-haven Yen. The futures tied to the S&P 500 are already trading in the green. However, the AUD/JPY pair has retreated from session highs to 66.90.

Technical levels

 

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