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.

Omkar Godbole FXStreet Contributor

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).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Shrinking
1H	Bearish	Neutral	Shrinking
4H	Bearish	Neutral	Shrinking
1D	Bullish	Neutral	Low
1W	Bullish	Neutral	Low
Updated Jul 31, 18:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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