April 1, OctaFX – The Australian dollar gained after data from China showed a rebound in manufacturing activity. The data released on Sunday showed that in March, the manufacturing PMI rose to 50.5. This was better than the consensus estimates of 49.5. It was also the best number this year after contracting in the past four months.
As proof of the improving sentiment, the Caixin Manufacturing PMI released today rose to 50.8. The non-manufacturing PMI rose to 54.5, which was in line with expectations. The positive manufacturing activity from China is a good way to start the second quarter because one of the biggest fears in the market this year has been the slowing global economy, led by China.
AUDUSD technical analysis
It was a positive quarterly start by the Aussie following the positive manufacturing activity from China. The AUDUSD pair rose to a high of 0.7125, which was the highest level since Wednesday.
It is now trading at the 0.7122 level, which is along the upper line of the Bollinger Bands while the RSI has moved to almost the overbought level. The price is also along an important trendline as shown below. The pair will likely continue moving upwards to test the important resistance level of 0.7150.
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