Aussie rebounds, as growth rate in China rebounds

Forex: Aussie Rebounds, Greenback and Euro Slumps
Forex: Aussie Rebounds, Greenback and Euro Slumps

After its principal drop in a month since 2011, the Aussie bounced back, based on accelerated growth in manufacturing in China. This eased apprehension about the buzz, that indicated a slowdown in the largest economy in Asia, might case reduction in the demand for commodities here. The dollar in Australia advanced against all its 16 major peers, supported on a technical indicator used by traders, which signaled that the fall in the currency was overhyped.
Adding 0.6%, the Aussie reached 96.28 U.S. cents in Sydney after indicating a 7.7% slide last month, which described a biggest monthly plunge since September 2011. Meanwhile, the kiwi advanced 0.3% to 79.69 U.S. cents, after a 7.2% slump in May.
The Monday Asian trading session led the AUD moving up against its U.S. competitor; however, the AUD managed to trade off at the highest level of the day followed by the release of a chief economic data in China.
The currency pair AUD/USD here moved up by 0.39% to 0.9615. The pair is supposed to find support at 0.9527 and resistance at 0.9684, based on the 19 month-low or Wednesday’s low and Friday’s high, respectively.
Previously in the session, the AUD/USD pair traded as high as 0.9636, but traders gain profits after the release of unofficial HSBC manufacturing report in China, which slumped to 49.2 last month from 50.4 in April. The report also mediated on the dollar in New Zealand based on the advancing of the AUD/NZD by 0.24% to 1.2082. China is considered the largest export market for New Zealand.
Elsewhere, AUD/JPY moved up by 0.51% to 96.68 and EUR/USD plummeted by 0.35% to 1.3525.
In the meantime, the rand in South Africa turned out to be the most oversold major currency on the globe after the highest monthly drop since September 2011.
In May, the rand slumped against the dollar by 11%, causing its 14-day relative strength index to reach 86. Anything above 70 on this chart shows a steep fall for a currency. As per Bloomberg, the rand emerged as the most oversold currency among the 16 major ones known in the financial market. Rand’s reading on Bollinger band and stochastic oscillator also implied a looming hitch.