EncoreFX’s daily market updates are written by our experienced and professional dealing team.
By Nicholas Cork
AUDUSD begins April midway between its 6-week range of 0.70/0.72 cents. Chinese data released on the weekend will give sentiment a decent boost today as China’s manufacturing purchasing managers index rose to 50.5 from 49.2 last month, the biggest one-month increase since 2012, which exceeded all estimates by economists and cheered the ‘China has bottomed’ crowd. It has this morning risen above 71 cents on this news. AUD crosses are also higher but cannot get too excited for a sustained move higher unless 72 cents is firmly tested and AUDJPY also tests 80.00. A busy week still lies ahead for the AUDUSD with the RBA cash rate decision due tomorrow along with the erratic Building Approvals data. Retail Sales and Trade Balance are due on Wednesday. 0.7000 still supports.
Trade talks continue to trundle along with China saying that they will continue to suspend retaliatory tariffs on U.S. auto and car parts from April 1. Trumps adviser Kudlow changed focus to the Federal Reserve saying that they should “immediately” cut interest rates by 50 basis points… “There’s no inflation out there, so I think the Fed’s actions were probably overdone.”
The GBP tested 6-we lows on Friday as Britain continues to go nowhere, and no doubt talk of a snap election will continue to rise, and in NZ, the Global Dairy Auctions will be the focus early Wednesday.
AUD red line vs Chinese Manufacturing data yellow line (Reuters)
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