AUD/USD nears 50-HMA support on below-forecast China Caixin PMI

• AUD/USD has come under pressure following the below-forecast China Caixin PMI release. 
• Reports are doing the rounds that China may cut rates today. 

The AUD/USD pair is feeling the pull of gravity, now trading near the 50-hour moving average (HMA) support at 0.7238, possibly due to dismal China data. 

The Caixin manufacturing PMI fell to 48.3 in January - the lowest level in nearly three years - missing the estimate of 49.6. 

The sharp contraction in China's manufacturing sector is likely to bolster fears of a deeper near-term slowdown in the world's second-largest economy. It is worth noting that the Caixin PMI focuses on small and medium-sized export-oriented units. 

So, Caixin's drop to three-year lows could also be considered a sign of anemic demand in the global economy. 

No wonder, the Aussie dollar has come under pressure in the last few minutes. The 50-HMA support of 0.7238 could be breached in a convincing manner if the global equities react negatively to the disappointing China data. As of writing, the S&P 500 futures are trading flat-to-negative. 

Reports are doing the rounds that the People's Bank of China (PBOC) could cut rates as soon as today to counter the recent deterioration in the economy. So far, however, China rate cuts talks have not put a bid under the risk assets and the AUD. 

Technical Levels