News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • (ASEAN Fundy) US Dollar Forecast: Turning Point Reached? USD/SGD, USD/THB, USD/IDR, USD/PHP #USD $USDGSD $USDTHB $USDIDR $USDPHP
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here:
  • RT @mkraju: Manchin signaling he’s open to $1.75T for social safety net bill, per source briefed on matter, but it’s unclear where the pric…
  • Further your forex knowledge and gain insights from our expert analysts @JohnKicklighter and @JStanleyFX on $USD with our free Q4 market analysis guide, available for free today. #DailyFXGuides
  • RT @JournalistRoss: From CNN's @mkraju: The goal among Democratic leaders is to have a vote Wednesday or Thursday on the infrastructure pac…
  • *Reminder: Weekly Strategy Webinar tomorrow at 8:30am ET on @DailyFX !!
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Wow Liverpool...
  • With the $SPX, Bitcoin and Fed 2022 rate forecasts pushing record highs; the heavy economic docket for the coming week will make for some loaded trading potential. The events and markets I'm looking at ahead:
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
Australian Dollar, S&P 500 Gain on Upbeat China PMI. Resistance Next?

Australian Dollar, S&P 500 Gain on Upbeat China PMI. Resistance Next?

Daniel Dubrovsky, Strategist

Australian Dollar, AUD/USD, S&P 500, China PMI - Talking Points

  • Australian Dollar, S&P 500 futures gain on upbeat China PMI data
  • Recovery from world’s largest economy bodes well for global growth
  • AUD/USD may be restrained by descending resistance as it ranges

The pro-risk Australian Dollar received a cautious boost, alongside S&P 500 futures, as a group of official Chinese PMI data crossed the wires. Manufacturing PMI clocked in at 50.9, slightly higher than the 50.5 estimate. The non-manufacturing statistic printed at 54.4, again higher than the 53.6 consensus. With PMI readings, values above 50 indicate growth in the reported sector and vice versa.

With the Reserve Bank of Australia unlikely to act on adjusting interest rates amid heightened coronavirus cases in the US and locally, the importance of the data for AUD/USD likely has more to do with its broader implications for global growth. China is also of course Australia’s largest trading partner and economic activity in the former often implies knock-on effects for the latter.

On the chart below is the Citigroup economic surprise index tracking China overlaid with the Australian Dollar. The former measures data outcomes relative to economists’ expectations. Values increasingly above 0 indicate outcomes tending to surprise above estimates and vice versa. Since the Aussie bottomed in March, it rallied in tandem with the swift recovery from the world’s largest economy.

Since the beginning of this month however, China seems to be struggling to find further momentum in rosy data surprises. Today’s readings could help reinvigorate that trend, potentially boding well for the Australian Dollar. Downside risks remain though. The United States has seen cases reach daily record levels of late. The state of Arizona just closed bars, gyms and movie theaters for 30 days. More of the same could sink growth.

Discover your trading personality and optimal forms of market analysis

AUD/USD Versus Aggregate China Data Performance

Australian Dollar, S&P 500 Gain on Upbeat China PMI. Resistance Next?

Chart Created in TradingView

Australian Dollar Technical Analysis

From a technical standpoint, the Australian Dollar remains in a congestive setting since AUD/USD topped at the beginning of June. Key support sits immediately below at 0.6777 – 0.6840. There might be descending resistance forming from the June 10 high – red line on the daily chart below.

This trend line could risk accelerating AUD/USD’s top given confirmation of a breakout below support. That would expose the 0.6685 – 0.6646 inflection range. Otherwise, uptrend resumption entails taking out 0.7015 – 0.7064 which would open the door to testing the July 2019 high.

AUD/USD Daily Chart

Australian Dollar, S&P 500 Gain on Upbeat China PMI. Resistance Next?

Chart Created in TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for

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.