AUD/USD remains capped below 100-DMA on poor Caixin China PMI

The AUD/USD pair failed another attempt to surpass 100-DMA barrier at 0.7460 as the AUD was hit by worse-than expected Caixin China manufacturing PMI report.

AUD/USD: finds support near 0.7438

Currently, the AUD/USD pair trades -0.11% lower at 0.7443, having dropped to fresh session lows of 0.7438 on the data release. The Aussie keeps the red and fails to take on the recovery above 0.7460 region after the Chinese private sector manufacturing PMI report disappointed markets and weighed on the investors’ sentiment as well. China Caixin Manufacturing PMI stood at 48.6 vs. 49.2 expected and 49.2 last.

However, the downside remains capped on the back of an extended risk-on rally in the Asian equities, which underpins the demand for the higher-yielding currency AUD. The Nikkei 225 jumps +0.71%, while ASX 200 rallies +0.64%.

With the Chinese datasets out of the way, markets now look forward to the US manufacturing reports from both the Markit and ISM for fresh cues on the major.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7486 (daily R1) above which gains could be extended to the next hurdle located at 0.7500 (round number). On the flip side, the immediate support located at 0.7425 (20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7345 (50-DMA).