The 2 May AUDUSD Fundamental Drivers Expectations shows that the pair is catching some lift in the Asia session, hiking back over the 0.7500 major handle but still deep in bear country. But how is China's manufacturing figures impacting the Aussie?
2 May, OctaFX – The Aussie is bouncing off of a session low of 0.7475 after China's Caixin Manufacturing PMI posted a mild gain, rising to 51.1 in April after hitting a four-month low in March of 50.1.
The AUD is seeing some lift from better-than-expected China data
Initial reaction in the AUD/USD was muted, but the positive undertones to China's manufacturing figures are driving some bullish appetite back into the Aussie for Wednesday.
Later on today will be the FOMC's Monetary Policy meeting at 18:00 GMT and the US Dollar could see some action if the overall tone of the FOMC comes out fairly hawkish; while the US is expected to hold off on a rate hike this week, traders are anticipating a further three increases from the Fed before the end of 2018.
The widening interest rate differential is playing havoc on the Aussie, which is sliding steadily against the Greenback into new lows for the year.
2 May AUDUSD Fundamental Drivers Expectations
Aussie bulls have a long way to go if they're going to stage a meaningful correction on the AUD/USD chart, and as FXStreet's own Valeria Bednarik noted,
"the pair is still biased lower according to technical readings in the 4 hours chart, as the price is further below a bearish 20 SMA, while technical indicators stalled their declines well below their mid-lines, but with no signs of changing their previous course."
Support levels: 0.7470 0.7430 0.7400
Resistance levels: 0.7520 0.7550 0.7590
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