China is supportive of AUD

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By :  ,  Financial Analyst

China is supportive of AUD

Australia remains closely linked to Chinese economy and AUD is impacted by any news from China. But, over the weekend, Chinese economic news were pretty positive as China's official Manufacturing PMI only fell to 50.6 in May (vs 51.1 expected) from 50.8 in April, while non-manufacturing PMI climbed to 53.6 (vs 53.5 expected) from 53.2 in April.

From a technical point of view, on a daily chart, AUD/USD is supported by a rising trend line and by its 50-day moving average (in blue) as the daily RSI stands within its buying area. Readers may therefore consider the potential for further advance above horizontal support at 0.6410. The nearest threshold would be set at horizontal resistance at 0.6850 and a second one would be set at yearly top at 0.7030 in extension.

Source: TradingView, GAIN Capital

Related tags: Forex Forex Australia

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