AUD/USD Slowly Strengthens, Is a New Trend Forming?
The AUD/USD pair opened the week with subdued movement despite the release of Chinese PMI data, which again showed contraction. Although China's manufacturing and services sectors were both below 50, the market appeared to quickly shrug off the negative sentiment. Optimism emerged thanks to easing trade tensions and the Chinese government's steps to stimulate consumption, while the chances of policy easing by the Australian central bank are now considered increasingly remote. Meanwhile, the US dollar weakened to a two-week low on growing expectations that the Fed will cut interest rates again this month, keeping AUD/USD near its two-week high.
Technically, AUD/USD is showing signs of strengthening after breaking through the 100-day simple moving average (SMA) at the end of last week. However, market participants remain cautious and are awaiting the release of important US economic data this week, starting with the ISM Manufacturing report. The results of this data will likely determine whether AUD/USD is able to continue the rally it has formed over the past week or is instead stuck in the same range. (az)
Source: Newsmaker.id
