Topic: COZfx: AUD/USD rises to 2.5 highs on China PMI
COZforex: The Australian dollar rise to 2.5 month highs against its US counterpart on Monday, supported by the release of upbeat Chinese manufacturing data.
AUD/USD hit 0.9445 amid late Asian trade, the pair's highest since April 10; the pair subsequently consolidated at 0.9439, gaining 0.52%. COZforex senior currency strategist Ian • Quigley said, AUD/USD is predicted to find support at 0.9393, and a decline through could take it to the next support line of 0.9349. Meanwhile, the pair is predicted to find its first resistance at 0.9463, and a rise through could take it to the next resistance line of 0.9489.
In commodities, LME Copper prices rise 0.7% or $47.0/MT to $6777.5/MT. Meanwhile, Aluminium prices edged up 0.1% or $1.0/MT to $1845.0/MT.
A report earlier showed that China’s HSBC manufacturing purchasing managers’ index came in at 50.8 in June, up from a final reading of 49.4 in May. It was the first time the index has risen above the 50 level separating growths from contraction in six months. The data eased fears over recent signs of a slowdown in the world’s second largest economy.
Meanwhile, demand for the greenback remained under pressure after Federal Reserve gave no indication last week of when interest rates could start to rise. Additionally, the Fed’s forecast of where interest rates might reach in the long term dropped from 4% to 3.75%.
Later in the day, the US was to release preliminary data on manufacturing activity and private sector data on existing home sales.
(COZ forex UK)