Home Market News AUD/USD ignores strong China Caixin Services PMI ahead of RBA rate decision

AUD/USD ignores strong China Caixin Services PMI ahead of RBA rate decision

AUD/USD ignores strong China Caixin Services PMI ahead of RBA rate decision

AUD/USD pauses pullback from intraday top of 0.7662 around 0.7650 during early Tuesday. In doing so, the Aussie pair takes clues from China’s Caixin Services PMI data for March but cautious sentiment before the RBA probes the recovery moves.

China’s Caixin Services PMI differs from the Caixin Manufacturing PMI while rising to 54.3 versus 51.7 market consensus and 51.5 previous readouts. Earlier within the day, Australia’s March month ANZ Job Advertisements grew past-7.2% prior (revised to eight .8% afterward) to 7.4%.

Read: China’s Caixin Services PMI unexpectedly jumps to 54.3 in March, AUD/USD uninspired

Other than the await the RBA, the shift within the market sentiment also challenges AUD/USD upside. The market seems to consolidate the previous day’s gains because the latest recent headlines from the united kingdom and Japan tests the optimism. Among them, the UK’s signals to limit the AstraZeneca vaccine for children join Japan’s fears of a rate cut and therefore the probable economic imbalances.

On the contrary, New Zealand’s opening of national borders with Australia and recovering coronavirus (COVID-19) conditions reception test the bears.

Amid these plays, S&P 500 Futures ease 0.10% intraday from the record top, flashed the previous day, to 4,064. Though, the US 10-year Treasury yields drop below 1.70%, down 3.4 basis points (bps), by the press time.

After witnessing the initial reaction to the upbeat activity numbers from Australia’s biggest customer, AUD/USD traders will keep their eyes on the Federal Reserve Bank of Australia’s (RBA) monetary policy meeting decision for fresh impulse.

Read: When is that the RBA rate of interest Decision and the way could it affect AUD/USD?

Technical analysis
The 0.7560-55 support zone comprising the neckline of the short-term head-and-shoulders becomes the key to observe during the AUD/USD pullback moves. Meanwhile, a daily closing beyond 100-day SMA, around 0.7640, enables AUD/USD buyers to stay their eyes on the mid-March low surrounding the 0.7700 threshold.

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