AUD/USD Surges Above 0.6730 As China PMI Data Improves

AUD/USD has jumped above 0.6730 today on better than expected PMI figures from China's National Bureau of Statistics (NBS).

Manufacturing PMI has reached 51.9, which is higher than the estimate of 51.5, but lower than the previous release of 52.6. Non-Manufacturing PMI increased higher to 58.2 compared to the previous release of 56.3. It can be seen that the state of the Chinese economy is indeed stable and moving towards economic recovery, with the help of monetary and non-monetary measures taken by the government. However, investors should still pay attention to the Caixin Manufacturing PMI data on Monday, as this data can provide an overview of the performance of the manufacturing sector in China. In addition, investors should also consider that Australia is China's main trading partner, so the movement of the Chinese economy will affect the Australian Dollar. If the scale of Chinese economic activity increases, this can support the Australian Dollar. Furthermore, the interest rate decision by the Reserve Bank of Australia (RBA) can also affect the movement of the Australian Dollar. Investors have different opinions regarding the monetary policy that will be taken by RBA Governor Philip Lowe. Some argue that falling inflation can support a steady policy and observation of the impact of current interest rates, while others argue that the RBA should continue to strengthen the inflation rate. The previous statement by RBA Governor Philip Lowe, who stated that the central bank is considering maintaining the status quo in April, suggests the possibility that the RBA will keep interest rates at the same level. However, this is still speculation and cannot be confirmed. On the other hand, there is also a school of thought that believes that although Australian inflation has weakened, the Consumer Price Index (CPI) is still far from the desired target. Therefore, the mantra of increasing inflation should continue.

Warning!

This analysis is based on fundamental and technical views from trusted sources, not advice or invitation. Always remember that this content is intended to enrich the reader's information. Always use independent research first regarding other forex information to be used as a reference in your trading.

Get the latest news and articles from GIC Indonesia, which you can check on Google News every day to find out the latest updates about the world of forex to crypto. Trading is also on GICTrade using an ECN account to enjoy trading with low spreads starting from zero!

Enjoy the Ease of Trading & Take Profit in Just One Application, Download Now!