FXStreet (Bali) – AUD/USD has jumped over 20 pips to a session high of 0.7660 after the Chinese HSBC PMI came in line with expectations at 49.2 for May, as slight improvement of 0.1 bp from last month report.
RBA up next, on hold outcome eyed
The RBA monetary policy meeting is due on Tuesday, with broad-based consensus for a no change in policies, despite there are obvious risk of a more dovish tone following last week’s capex.
Alex Joiner, Australian Economist at Bank of America Merrill lynch, notes: “The Bank may be reluctant to ease again in coming months considering the risk of fuelling structural imbalances in the housing market and there has been a bounce in sentiment after the May Federal Budget. However, disappointing 1Q Capex data suggests the transition of the economy remains weaker than expected.”
AUD/USD technicals
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: “The AUD/USD 4 hours chart shows that the price remains well below a strongly bearish 20 SMA, currently around 0.7690, whilst the technical indicators present a mild bearish tone in negative territory, with the RSI in oversold territory. The monthly low stands at 0.7617, which means a break below it should fuel the decline towards the 0.7530, the next strong static support area.”
(Market News Provided by FXstreet)