The Australian Dollar finished little-changed in relatively subdued trade at .6169 from 0.6167 yesterday. AUD/USD slipped to an overnight low at 0.6111 before bouncing back to yesterday’s opening level. Overnight high was 0.61842. Despite the higher USD against majors and Asian Emerging market currencies, the Aussie Battler stayed buoyant, awaiting expected improvements in China’s PMI’s for March.
AUD/USD has immediate resistance at 0.6200-20 area followed by 0.6260 and 0.6330. Immediate support can be found at 0.6110 and 0.6070. Traders will focus on the release of China’s official PMI numbers for March. Manufacturing PMI’s are expected to climb to 45 from February’s 29.6. Non-manufacturing PMI is forecast to rise to between 38 and 42 in March from the previous month’s 29.6. The Aussie stayed bid in anticipation of a contraction in this set of reports.
Watch China’s Manufacturing PMI. A rise of 45-50 will see the Aussie break above 0.62 cents to 0.6250. Anything lower than 40 could see us back to the 0.6050-0.6200 range. Let’s not forget that the weaker Asian and EM currencies will be a barrier to any sustained AUD/USD gains.