We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Real Time News
  • $USDJPY may be set for a larger pullback on the back of a deteriorating risk environment amid the potential failure in US-China trade talks. Get your market update from @JMcQueenFX here:https://t.co/UOGT5xRX9v https://t.co/JLXsn96FQY
  • Poll: We've had some upgrades in a few growth forecasts from around the world recently and tomorrow brings the Nov PMIs (AUS, JPN, EZ and US). What do you think is the risk of a recession in 2020?
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • staring now -> https://www.dailyfx.com/webinars/3952937094787220994?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr https://t.co/fk3MmFxalj
  • That was a fast reversal in crude oil positioning among retail CFDs yesterday. Not as heavy a build up in short as we pressure 58 https://www.dailyfx.com/sentiment?CHID=9&QPID=917719 https://t.co/m1YFe8PEsM
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.09%, while traders in France 40 are at opposite extremes with 82.08%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/pxnhohjlR2
  • LIVE IN 15 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Crude #oil prices are approaching confluence downtrend resistance just higher at 58.45/61. Get your crude oil technical analysis from @MBForex here:https://t.co/YtqEw4joWZ #OOTT https://t.co/WISQjuukP4
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.77% Silver: -0.08% Gold: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/MB2wIHd8Zh
AUD/USD Falls After China Caixin PMI Falls Short of Expectations

AUD/USD Falls After China Caixin PMI Falls Short of Expectations

2019-02-01 02:00:00
Dimitri Zabelin, Junior Currency Analyst
Share:

TALKING POINTS - AUD/USD, CHINA CAIXIN PMI, TRADE WARS

  • China’s PMI Caixin Index undershot forecasts
  • AUD/USD, Australian 2-year bond yields fall
  • Markets now eyeing trade talks in Washington

See our free guide to learn how to use economic news in your trading strategy!

AUD/USD, along with Australian 2-year bond yields and the country’s benchmark ASX equity index fell after China’s Caixin PMI underwhelmed. Forecasts were at 49.6 with the actual at 48.3, the fastest contraction since 2016. Technical indicators were also signaling that the ASX was struggling to make upward progress with underlying momentum gradually declining.

AUD/USD – 15-Minute Chart

Chart Showing AUD/USD on a 15-minute Chart

This week, the Chinese Vice Premier Liu He has been negotiating with the US Trade Representative Robert Lighthizer. Both Beijing and Washington are eager to reach an agreement to end the trade war before the deadline on March 1. If a deal is not reached by then, the US has threatened to impose tariffs up to 25 percent on $200 billion worth of Chinese goods.

So far, the biggest sticking points have been issues relating to tech intellectual property. This comes against the backdrop of the Huawei scandal and the arrest of its CFO Meng Wanzhou which has weighed on the trade negotiations. Despite this, Lighthizer and Mnuchin are flying to meet in with officials in China, possibly in mid-February.

Looking ahead, Reserve Bank of Australia will be announcing its Cash Rate Target on February 2 at 03:30 GMT. Given today’s disappointing data and China’s slowing economy, a rate hike in the near future is not likely. Other variations of Chinese PMI data will also be released which may move the Aussie. Slower growth in China and potential 2019 headwinds may weigh down on the Aussie as 2019 develops.

AUD/USD TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.