China PMI Data Sinks AUD/USD Below $0.6500!


The focus of the market in the Asian session today (Tuesday) was temporarily directed to the release of Caixin service PMI data at 9.45 this morning.

The data reading for February showed that the service sector in China decreased slightly, but the figure was still above the 50.0 point level.

However, it is seen to have had a significant impact on the Australian dollar as the economy is closely linked to China as a major trading partner.

The decline of the Aussie dollar in the Asian session continued to resume trading at the opening of the European session this afternoon.

The price movement can be observed on the chart of the AUD/USD currency pair which is seen showing a decline to the latest low over the last week's level.

In yesterday's early week opening trade, the price hovering around 0.65300 displayed a moderate bearish pattern for several sessions.

A bearish price signal was observed when the trading close of the New York session saw the price move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the AUD/USD chart.

After reacting to the data published in the Asian session this morning, the price continued to decline until it crossed the 0.65000 level.

The price drop is seen to have passed the level reached last week around 0.64900 with the expectation that the drop will continue towards the support zone at 0.64500.

If the situation changes again, seeing the price rebound to make an increase again, the 0.65000 level needs to be overcome before giving a more bullish signal for the price.

A successful rally continued after that expecting the zone at 0.65400 to be reached again.