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Forex - AUD/USD slightly higher after China PMI data

Published 04/30/2013, 09:28 PM
Updated 04/30/2013, 09:29 PM
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Investing.com - The Australian dollar traded modestly higher against its U.S. rival during Wednesday’s Asian session following the release of China’s official purchasing manufacturing index for April.

In Asian trading Wednesday, AUD/USD inched up 0.06% to 1.0380. The pair was likely to find support at 1.0308, the low of April 16 and resistance at 1.0424, the high of April 8.

Aussie-related pairs came into focus after China’s National Bureau of Statistics said the April reading of PMI in the world’s second-largest economy was 50.6 compared with 50.9 last month. Analysts expected an April reading of 50.7. Readings above 50 indicate expansion.

While the April reading is above the all-important 50 line, it does indicate the Chinese economy may be expanding at a more sluggish pace than many market participants are comfortable with. China is Australia's largest trading partner.

Markets in China, Hong Kong, India, South Korea, Taiwan, Singapore, Malaysia, Thailand, Vietnam and the Philippines are closed Wednesday for public holidays.

Elsewhere, NZD/USD rose 0.08% to 0.8575. The pair was likely to find support at 0.8516, the low of April 10 and resistance at 0.8643, the high of April 12. New Zealand recently said that China has replaced Australia as its top trading partner.

The International Monetary Fund’s recent Asian outlook said that New Zealand’s top trading partners look poised to continue doing well economically and that will benefit New Zealand.

Meanwhile, AUD/NZD inched lower by 0.06% to 1.2103 while AUD/JPY fell 0.13% to 100.92.


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