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
Bearish
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
GBP/USD
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
USD/JPY
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
Gold
Bearish
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
Bitcoin
Mixed
More View more
Real Time News
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The wobble in risk trends makes $USDJPY look more interesting. This is the 4-hour picture, but the weekly shows the weight around the 110.00/25 area as the top of a massive triangle https://t.co/EHaUpUuTbv
  • starting right now https://www.dailyfx.com/webinars/1338844901231735299?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr https://t.co/Hh88yMTXmq
  • 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=1338844901231735299&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 97.56%, while traders in Germany 30 are at opposite extremes with 78.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/M0A5gGjUYv
  • 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=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Already the highest weighted member on the $SPX and NDX, $AAPL is about to claim the #1 spot on the $DJI amid Boeing's ongoing struggles. This lends even more strength to tech and the FAAMG group https://t.co/GBngBaCSAk
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Gold: -0.20% Oil - US Crude: -0.58% Silver: -1.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/xLEoVHbrd0
  • LIVE IN 30 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • White House Advisor Kudlow says that 'market opening' key to trade talks with EU - BBG
AUD/USD May Recover Losses on Soft China Caixin Services PMI Data

AUD/USD May Recover Losses on Soft China Caixin Services PMI Data

2019-03-05 02:00:00
Daniel Dubrovsky, Analyst
Share:

Australian Dollar, Caixin PMI Talking Points

  • Australian Dollar falls after China Caixin services PMI missed expectations
  • Data underscored need for stimulus as China, Nikkei 225 fell as mood soured
  • AUD/USD could yet recover losses if the RBA disappoints dovish policy bets

Trade all the major global economic data live and interactive at the DailyFX Webinars. We’d love to have you along.

The Australian Dollar declined in morning Tuesday trade following softer-than-expected Chinese Caixin PMI data. Services data, the sector in which the world’s second-largest economy is slowly transitioning more into, clocked in at 51.1 in February versus 53.5 expected. That was the weakest pace of expansion (above 50 equals growth while below 50 means contraction) since October 2018. Composite PMI was 50.7 from 50.9 prior.

China is also Australia’s largest trading partner. Softer economic performance in the former could have adverse knock-on effects on the latter.

Risk trends were also souring, with the Nikkei 225 aiming lower on the announcement. China’s economy is slowing, and these numbers continue to show the need for economic stimulus. Speaking of which, a little over an hour before the Caixin PMI data was released, China announced that it will be cutting taxes as it lowered GDP estimates. AUD/USD could yet recover some of its gains over the next few hours.

Join me as I cover the RBA rate decision LIVE and the reaction in the Australian Dollar where I will also be looking at the risks for AUD/USD ahead!

That is because we could be in for a less-dovish RBA rate decision. The central bank is still quite patient on its approach for interest rates. While it sees its outlook as more neutral from favoring a hike now, it is in no rush to adjust its monetary-setting tool as is. Thus, with over half of the markets pricing in a cut by the end of this year, we may see some of those bets unwind. That may push AUD/USD higher. You may follow me on Twitter for the latest updates on the Aussie here at @ddubrovskyFX.

AUD/USD 5-Minute Chart Reaction to Caixin PMI Data

AUD/USD May Recover Losses on Soft China Caixin Services PMI Data

Chart Created in TradingView

Australian Dollar Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.