AUDUSD remains down on Caixin Manufacturing PMI in China

The AUDUSD is struggling to recover from intraday losses as the latest data from China and Australia add to the gloomy mood on Monday morning. Nonetheless, the Aussie pair is trading lower near 0.6665 as of press time. Owing to concerns about the RBA’s dovish hike and softer US data on activity and employment.

Furthermore, Australia’s TD Securities Inflation fell to 0.3% MoM and 5.7% YoY in March, compared to 0.4% and 6.3% respectively in February. Adding to the Pacific major’s previous week’s downbeat inflation and Retail Sales figures to strengthen the dovish bias for the Reserve Bank of Australia’s (RBA) next move.

Earlier in the day, there was news about OPEC+.The reduction in output weighed on sentiment and AUDUSD prices. Because less energy output implies a further increase in oil prices and increased pressure on inflation.

It’s worth noting that the CME’s Fed Watch Tool recently suggested an increase in the hawkish bias for the Federal Reserve’s (Fed) 0.25% rate hike in May. Compared to less than 50% chances supporting the event in the previous week. Which weighs on the AUDUSD prices.

China Caixin Manufacturing PMI fell to 50.0 in March.

Nonetheless, China’s Caixin Manufacturing PMI for March fell to 50.0 from 51.6 in February and 51.7 in market expectations.

Markit Economics’ Caixin China Manufacturing PMITM is based on data compiled from monthly responses to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies.

RBA’s dovish bias all weigh on the AUDUSD pair.

Given the risk-off environment and mixed signals, the AUDUSD pair may remain under pressure near the short-term key support line. However, the key events for Aussie pair traders to watch for clear directions will be Monday’s US ISM PMI and Tuesday’s RBA Interest Rate Decision.

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