AUD/USD recovery fades around mid-0.7600s on China’s downbeat Caixin Manufacturing PMI

AUD/USD fails to extend the corrective pullback from intraday low.
China’s Caixin Manufacturing PMI drops to 51.5 in January.
Risks dwindle amid mixed clues, market chatters drive silver as restrictions on US equities remain firm.
US ISM Manufacturing PMI, social media platform talks should be followed closely.

Anil Panchal FXStreet

AUD/USD fizzles the corrective pullback from 0.7605 around 0.7645, currently near 0.7638, during the early Monday’s trading. The pair’s recent weakness could be traced from weaker-than-expected Chinese data and risk-off mood.

China’s Caixin Manufacturing PMI follows the official readings while declining from 52.7 market consensus to 51.5 in January. During the weekend, China’s official NBS Manufacturing PMI dropped below 51.6 forecast to 51.3 while Non-Manufacturing PMI dropped to 52.4 from 52.6 market consensus.

Read: Chinese Caixin Manufacturing PMI Jan missed: 51.5 vs exp 52.6; prev 53.0, AUD holds

Earlier in the day, Australia’s AiG Performance of Mfg Index rose to 55.3 from 52.1 in January while TD Securities Inflation eased to 0.2% from 0.5% MoM. Further, Australia and New Zealand Banking Group’s (ANZ) Job Advertisement gauge for January eased to 2.3% from 9.2%.

Market sentiment wobbles amid talks over the surge in silver demand and anticipated run-up on the social media platforms like Twitter and Reddit. After wild moves in equities, traders recently have targeted silver prices, up around 5.0% near a six-month high. The same pushed some of the trading avenues like Apmex to reject taking orders of the white metal in anticipation of a regulatory move.

It should be noted that the jump in vaccinations and a commensurate reduction in the coronavirus (COVID-19) cases try to placate the market bears but the EU-UK tussle and Australia’s fresh lockdown, a five-day gig in Perth, challenge the optimists.

Against this backdrop, S&P 500 Futures print 0.30% loss while the US 10-year Treasury yields stay heavy around 1.07% by press time.

Read: S&P 500 Futures drop to one-month low amid market frenzy

Given the lack of remaining data for publishing in Asia, AUD/USD traders should follow market sentiment, which in turn requires buyers to stay cautious. Though, likely weakness in the US ISM Manufacturing PMI, expected 59.5 from 60.3, can trigger consolidation.

Technical analysis

A sustained downside break of six-week-old horizontal support, around 0.7640, directs AUD/USD sellers toward 50-day SMA, at 0.7600 now.

Additional important levels

Overview
Today last price	0.7638
Today Daily Change	-3 pips
Today Daily Change %	-0.04%
Today daily open	0.7641

Trends
Daily SMA20	0.7726
Daily SMA50	0.7593
Daily SMA100	0.7386
Daily SMA200	0.716

Levels
Previous Daily High	0.7705
Previous Daily Low	0.763
Previous Weekly High	0.7764
Previous Weekly Low	0.7592
Previous Monthly High	0.782
Previous Monthly Low	0.7592
Daily Fibonacci 38.2%	0.7659
Daily Fibonacci 61.8%	0.7677
Daily Pivot Point S1	0.7613
Daily Pivot Point S2	0.7584
Daily Pivot Point S3	0.7538
Daily Pivot Point R1	0.7687
Daily Pivot Point R2	0.7733
Daily Pivot Point R3	0.7762

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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