AUD/USD ignores China PMI release, trade war fears could hurt
|- AUD/USD has hardly moved after the release of China's Caixin manufacturing PMI.
- The escalating US-China trade tensions could hurt the Aussie dollar and risky assets.
China's Caixin manufacturing PMI, which focuses more on the small and medium-sized export-oriented units, fell to an eight-month low of 50.8 in July as expected.
The data comes a day after the release of the disappointing official PMI but has not had any impact on the AUD/USD.
At press time, the currency pair is reporting marginal losses at 0.7416.
A source told Reuters earlier today that the US is considering raising tariffs. The bears may make a strong comeback if the Trump administration raises tariffs to 25 percent from 10 percent on $200 billion of imported Chinese goods.
The AUD may also feel the pull of gravity if the Chinese yuan tanks on fears of escalating US-China trade war.
AUD/USD Technical Levels
Resistance: 0.7429 (session high), 0.7457 (50-day MA), 0.7484 (July 10 high).
Support: 0.74 (5-day MA), 0.7370 (July 27 low), 0.7318 (July 20 low).
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