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Forex - AUD/USD advances to 2-day high after China PMI data

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Forexpros - The Australian dollar advanced to a two-day high against its U.S. counterpart on Tuesday, after the release of data showing that activity in China's manufacturing sector slowed less-than-expected boosted appetite for higher yielding assets.

AUD/USD hit 1.0483 during late Asian trade, the pair's highest since August 19; the pair subsequently consolidated at 1.0474, gaining 0.64%.

The pair was likely to find support at 1.0351, the low of August 18 and resistance at 1.0557, the high of the same day.

A preliminary reading of the HSBC's China purchasing managers' index edged up to 49.8 in August, from a final reading of 49.3 the previous month. A number below 50 indicates contraction in the sector.

There had been some speculation that the reading may turn out to be much weaker. China is Australia's largest trading partner.

The Aussie was also higher against the yen, with AUD/JPY climbing 0.54% to hit 80.37.

Later Tuesday, the U.S. was to release official data on new home sales.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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