The aussie received a boost on Monday’s open after Chinese manufacturing sector unexpectedly showed growth in March. The official Purchasing Managers’ Index (PMI) rose to 50.5 against a consensus of 49.9, marking a recovery from previous contraction. China’s stimulus measures might have started to yield results, which can only be good news for the much reliant Australian neighbour and its currency.
On the technical side, AUDUSD is rising towards the daily resistance of 0.7160. A break above might trigger a rally to 0.72. On the downside, 0.7060 is a key support for the recovery.
The sentiment-price correlation chart shows the sentiment pulling back from its peak. Daily news sentiment is moving higher and in 50% of the last 10 occurrences price has risen within 8 days.