AUD/USD drops towards 0.7300 on downbeat China Caixin Maunfacturing PMI

  • AUD/USD remains pressured, refreshed intraday low after China data.
  • China Caixin Manufacturing PMI for July dropped to 50.3, Aussie data came in mixed earlier in the day.
  • Market sentiment dwindles amid US infrastructure spending talks, Sino-US tussles, Iran headlines mostly ignored.
  • US ISM Manufacturing PMI, stimulus updates will be the key.

AUD/USD takes offers around 0.7330, down 0.14% intraday, amid early Monday. In doing so, the Aussie pair reacts to softer-than-expected and prior China data while paying a little heed to modest market sentiment.

China’s Caixin Manufacturing for July dropped below 51.3 prior and 51.0 expected to 50.3.

Read: The Caixin China Manufacturing PM: 50.3 vs 51.3 in June

Earlier in the day, Australia’s AiG Performance of Mfg Index and Commonwealth Bank Manufacturing PMI for July disappointed AUD/USD traders as both the readings fell below 63.2 and 58.6 previous readouts to 60.8 and 56.9 respectively. Further, ANZ Job Advertisements for July marked -0.5% figures versus 3.0% prior whereas TD Securities Inflation rose past 0.4% earlier print to 0.5%. It’s worth noting that China’s official activity data for July, namely NBS Manufacturing PMI, eased below 50.8 forecast to 50.4 in July during the weekend.

Other than the mixed data, easing covid pessimism in Australia and increasing vaccinations, coupled with the US Senate discussions over President Joe Biden’s infrastructure spending also test AUD/USD sellers.

Although the virus-led lockdown is likely to remain present till August 08 in Queensland, New South Wales (NSW) reports an easy 207 infections versus 212 marked the previous day. Elsewhere, the US figures are receding and Health official Anthony Fauci said, per CNBC, that the US is less likely to return to the lockdown.

Elsewhere, the US and the UK allege Iran over the last Thursday’s attack of Israeli oil cargo whereas the Sino-American tussles escalate, this time over the regulation of Beijing-based securities.

Amid these plays, S&P 500 Futures gain half a percent and the US 10-year Treasury yields ease one basis point to 1.23% by the press time.

Looking forward, updates over the US stimulus will be the key whereas the US ISM Manufacturing PMI for July, expected 60.8 versus 60.3 prior, may also entertain the AUD/USD traders. However, sellers are likely to remain hopeful.

Technical analysis

An eight-day-old support line holds the key to fresh AUD/USD downside targeting the yearly low of 0.7288, a break of which will direct quote towards October 2020 top near 0.7244. Meanwhile, recovery move may initially confront a five-week-old resistance line near 0.7385 before attacking the multiple resistance area surrounding the 0.7400 threshold. Overall, AUD/USD bears are in control.

additional important levels

Today last price 0.734
Today Daily Change -0.0005
Today Daily Change % -0.07%
Today daily open 0.7345
Daily SMA20 0.7415
Daily SMA50 0.7556
Daily SMA100 0.7635
Daily SMA200 0.7599
Previous Daily High 0.7405
Previous Daily Low 0.733
Previous Weekly High 0.7415
Previous Weekly Low 0.7317
Previous Monthly High 0.7599
Previous Monthly Low 0.7288
Daily Fibonacci 38.2% 0.7359
Daily Fibonacci 61.8% 0.7376
Daily Pivot Point S1 0.7315
Daily Pivot Point S2 0.7285
Daily Pivot Point S3 0.724
Daily Pivot Point R1 0.739
Daily Pivot Point R2 0.7435
Daily Pivot Point R3 0.7465



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more