The important data point for release today is the flash reading for the August HSBC China Manufacturing PMI.
A reading of above 50 for today’s data would be a positive for the AUD (it needs something positive if its to try to break out of this decline), but the consensus economist forecast is for 48.2 – still showing Chinese manufacturing contraction.
Official data and news announcements/reporting is painting an improving, more positive picture in China; the market will be looking for today’s private HSBC survey to confirm. But, if it doesn’t, it is difficult to see how a low reading on this indicator will not be met with more AUD selling.
A look at the orderboard:
- Offers 0.9100
- offers 0.9075/80
- offers 0.9055/60
- Initial offers 0.9000/10 (there is some stop loss to be done above 0.9000)
- Bids 0.8950
- Bids 0.8925
- Bids 0.8900
AUD still looks heavy