Tuesday, November 3, 2015

AUD/USD: consolidates before major RBA event

FXStreet (Guatemala) - AUD/USD has settled into a period of consolidation after yesterday's activity in Asia with a bid on the back of better than expected Chinese Caixan manufacturing PMI's for September at 48.3 vs 47.5 consensus and 47.2 previous.

The data offered the bulls some relief after a bearish gap that was filled subsequent to commitments, but instigated on the back of weak manufacturing PMI's for October that were a miss. We have the RBA interest rate decision and statement tomorrow so there may not be much activity until this key release.

Nonfarm Payrolls are also due as another major highlight and anything reasonably bullish from this report will likely leave the door open for a December rate hike from the Fed, underpinning demand for the greenback.

AUD/USD levels

Technically, the price needs to break the 28th October high of 0.7159 targeting R2 at 0.7199 through the 200 SMA at 0.7179. On the downside, the 0.7050/80 area is a key level of support that guards the downside to 0.7000.
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