The AUD/USD currency pair extends its losses from the weekly low and breaks a two-day downtrend.
China’s NBS Manufacturing and Non-Manufacturing PMIs both exceeded market expectations, but remained below previous readings.
Even as the Queensland Health Officer opposes AstraZeneca use, risk appetite improves, and Fed’s Waller sounds hawkish.
The significant data will include ADP Employment Change in the United States, as well as covid updates.
Following China’s official PMI data release on early Wednesday, the AUD/USD currency pair extends its fall from intraday highs to 0.7515, up 0.06 percent on the day. Even if the activity data did not disappoint, the pair’s recent weakening might be attributed to coronavirus (COVID-19) circumstances in Australia. However, the price fell to a new weekly low the day before when the covid variant spread prompted Australian authorities to declare lockdowns affecting over 80% of the population.
China’s NBS Manufacturing PMI increased to 50.9, exceeding the prediction of 50.8, but lagging behind the previous reading of 51.00. Similarly, after topping the 52.7 market consensus with 53.5 readings for June, the Non-Manufacturing PMI remained below 55.2.
Read more: Chinese PMIs beat expectations but fall short of expectations
After the Oz nation registered over 100 instances in recent days, numbers suggesting that over 4.0 percent of Australians are completely vaccinated have AUD/USD traders on their toes.
Despite the fact that slower inoculations risk spreading the covid strain farther, Queensland Chief Health Officer Jeanette Young recently rejected the use of AstraZeneca jabs for those under the age of 40 because to blood clotting concerns. Authorities from New South Wales (NSW) and Victoria also expressed out, noting current instances that they believe are linked to earlier infections.
In other news, comments from Fed Governor Christopher Waller questioned risk appetite, as the policymaker backed concerns over tapering. “Inflation expectations look entrenched,” Fed’s Waller said in a Bloomberg TV interview, while also hinting that inflation may continue over the Fed’s target for the next few movements.
S&P 500 Futures are moderately bid amid these moves, but US 10-year Treasury rates are flat as of press time.
Following the first market reaction to Australia’s important client China’s activity data, AUD/USD traders should keep a watch on the covid updates ahead of the US ADP Employment Change for June, which is predicted to be 600K versus 978K before for new impulse.
Despite the current corrective pullback, the AUD/USD remains below the 200-day SMA level of 0.7565, giving bears hope that the yearly low of 0.7477 will be reached. Beyond the major SMA, the 0.7600 level and early June lows near 0.7645 function as further upside filters.
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