AUD/USD eyes 0.80 handle on upbeat Aussie exports & China non-manufacturing PMI

The bid tone around the Aussie dollar strengthened, pushing the AUD/USD higher towards 0.76 handle after the Aussie current account data showed the net exports as percentage of GDP bettered estimates and the China non-manufacturing sector expanded at a faster rate in August. 

Australia posted a current account deficit of AUD 9.6 billion for the second quarter. This was higher than the expected print of AUD 7.5 billion. However, net exports as percentage of GDP came-in at 0.30%, beating the estimate of no change. This adds 0.3 points to the Q2 GDP [due tomorrow]. 

Elsewhere, the China non-manufacturing PMI came-in at 52.7 compared to the July figure of 51.5. The data adds credence to the argument that the fears of a slowdown in China are overdone. 

Focus on RBA

The focus now shifts to the RBA rate decision. The central bank is expected to keep rates unchanged, but may jawbone the AUD.

AUD/USD Technical Outlook

The spot currently trades at the session high of 0.7985. FXStreet Chief Analyst Valeria Bednarik writes-

“Technically, the 4 hours chart shows that technical indicators gain downward strength, now nearing their mid-lines, with a key support at 0.7935, as the pair has there its 20 SMA and the 50% retracement of the latest daily decline, all of which indicates that a break below the level should lead to a bearish extension for this Tuesday.”