China's HSBC Manufacturing PMI came out lower than expected earlier today, which slowed down the aussie's good run over the past two weeks. From the expected 49.4, the PMI came out only at 48.3, bringing the numbers to a seven-month low.
The numbers only tell a part of the story. In addition to that, the country's output and new orders contracted (from 50.8 to 49.2 and from 50.1 to 48.1, respectively), while its employment index came out at a five-year low.
The news dragged the AUD/USD pair under the 0.9000 zone, a level it has held on to for the past two weeks. Prior to that, the pair already tested lows of 0.8989 yesterday due to the market's positive response to the FOMC minutes. However, the data from China had an even more massive impact, which led to a sharp slide in the pair's value. It is currently trading at 0.8950, with initial resistance seen at 0.9023, followed by 0.9045. Meanwhile, initial support is at 0.8965, followed by 0.8942.
As for the USD/JPY, the pair continued to swing wildly between the 101.50-102.60 areas, a pattern that began to emerge earlier this month. So far, the pair has been struggling to return to the 102.00 zone. Although it managed to do so on Tuesday, and then again earlier today, it continues to be unable to maintain that level.
Earlier today, Japan posted mixed trade balance data for January, wherein its exports came out lower than expected at 9.5% over the past 12 months versus the projected increase by 12.6%. Previously, the figure was at 15.3%. Meanwhile, its imports grew higher than expected at 25.0% in the past 12 months versus the projected growth by 21.8%. Previously it was at 24.7%.
It is currently trading at 101.98, with initial resistance seen at 102.36, followed by 102.62. Meanwhile, initial support is at 101.72, followed by 101.47.
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