113% to 161% AB
161% to 224% BC-0.25%
88.6% to 113% XC
38.2% to 100% CD
Entry Price: 0.7236
Stop Loss: 0.7315 (79 pips)
Profit Target 1: 0.7105 (131 pips)
Profit Target 2: 0.6990 (246 pips)
Risk to Reward: 1 to 3.11
The AUD/USD at the beginning of the new trading month is retreating on an ambiguous background of Chinese statistics.
Chinese statistics are back in the limelight. In a little bit the Celestial Empire will go on long holidays on the occasion of the New Year, and now reports raise questions about how stable everything is in the Chinese economy.
According to a report published today, the index of business activity in the manufacturing sector in China in January amounted to 49.4 points vs. expectations of 49.6 points and 49.7 points previously. It turns out that in the industrial sector of China the sentiment is not very positive and confident. In some ways this is understandable: the beginning of the year is always associated with very low-key forecasts and investment, especially as the business in China is largely tied to the prolonged February holidays. On the other hand, the non-productive segment of the economy is feeling very well. Statistics show that here in January, the business sentiment index was 53.5 points. There was a slight reduction and the market did not react to it. All that is above the "breakwater" of 50 points signals a positive attitude of business.
Australian statistical data was mixed. The index of business activity in the manufacturing sector in January, according to the calculations from AiG, was 51.5 points. Inflation expectations at the beginning of the year rose slightly. The calculation of the consumer price index in January by MI illustrated a rise in inflation at 0.4% m/m.
There was almost no reaction to internal statistics, because reports on China are more important. China has been and remains the largest trade partner of Australia.