Charts: WorldWideMarkets Alpha Trader
The lower than expected reading of China's HSBC PMI should have taken the Australian Dollar lower. However, the Aussie made steady gains and breached the 0.7900 intraday resistance and remains firm against the softer US dollar. The impetus is mostly dollar driven in today's price action from late New York yesterday to the first half of European trading.
China's Flash HSBC/Markit Purchasing Managers' Index fell to 49.2 in March, below the median forecast of 50.6, and dips below the 50 level boundary between expansion and contraction. The survey is likely to prompt more monetary policy easing from Beijing, despite the past two interest rate cuts since November.