AUD/USD Fades a spike to 0.7240 on Weaker China Services PMI

AUD/USD Fades a spike to 0.7240 on Weaker China Services PMI

3 June 2016, 05:09
Roberto Jacobs
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AUD/USD Fades a spike to 0.7240 on Weaker China Services PMI

The AUD/USD pair failed to sustain at higher levels and turned negative once again following the release of the Chinese services sector activity report, which missed estimates.

AUD/USD revisits daily lows?

Currently, the AUD/USD pair now turns negative at 0.7237, easing-off session highs posted at 0.7238 in the last hour. The Aussie wiped-out gains as the bulls were hit by renewed concerns over the Chinese economic growth prospects, after the country’s services PMI report fell short of expectations. Caixin Chain Services PMI for May came in at 51.2 versus 51.8 last and 52.0 expectations.

However, the downside remains capped as risk tone recovers this session amid higher Asian equities as well as oil prices. Moreover, focus now remains on the crucial US payrolls data due later in the NA session today, which will provide fresh impetus to the AUD/USD pair.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7299/0.7300 (June 1 high/ round number) above which gains could be extended to the next hurdle located at 0.7350 (psychological levels). On the flip side, the immediate support located at 0.7211/00 (10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7175/65 (May 31 Low/ Daily S2).


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