Chart: WorldWideMarkets Alpha Trader
The Australian Dollar traded in a choppy range in the prior Asian session after a 25 basis point cut by the PBOC on their interest rates on Saturday, Feb. 28th. The current lending rate is now 5.35% while the benchmark savings rate is 2.5%.
The PBOC's decision to cut rates was prompted by signs of relative weakness in China's economy. China's official manufacturing PMI released on Saturday was 49.9 in February versus 53.7 in January. The Chinese State Information Center said China's growth is expected to slow to 7% in the first quarter.
Australia Feb PMI -3.6 pooints to 45.4 (weak demand cited)
Australia 4th Qtr Business Inventories -0.8% versus +0.1% forecast
Company Profits +0.2% q/q versus +0.3% forecast
Australia Jan New Home Sales +1.8%, multi-unit +9.9%, detached homes +0.1%
With the weak manufacturing data, business inventories and slowing housing data, market analysts have forecasted that the RBA may implement a 25-basis rate cut in their upcoming monetary policy meeting tomorrow.
Support: 0.7755, 0.7740, Option expiries: 0.7765-70
Resistance: 0.7810, 0.7820, 0.7830, 0.7850
Fibonacci Retracements: 0.7790 38.2% / 0.7803 50% / 0.7818 61.8%