AUD/USD remains bid above 0.7350 after China Caixin PMI

AUD/USD retains the bid tone after the above-forecast China Caixin Manufacturing PMI.
Rising tensions between Australia and China cap gains near 0.7360.

Omkar Godbole FXStreet Contributor

The AUD/USD pair remains bid following the release of upbeat China data. The escalating tensions between China and Australia look to be capping gains.

The data released at 01:45 GMT showed China's Caixin Manufacturing PMI, which surveys the small and medium-sized export-oriented units, rose to 54.9 in November versus expectations for 53.5 following October's 53.6. The data has come a day after government PMIs showed a continued rebound from the world's second-largest economy from the coronavirus-induced slowdown seen earlier this year.

So far, AUD/USD has failed to extend the early rise from 0.7338 to 0.7360 on the back of strong China data. The upside is being capped, possibly by the China-Australia tussle.

Australian Prime Minister Scott Morrison has demanded an apology for a senior China government official's tweet showing a doctored image of an Australian soldier killing an Afghan child. China has placed tariffs on key Australian exports like wine in response to what it claims are hostile policies from Canberra, according to Axios.

The currency pair picked up a bid near 0.7338 early today, possibly tracking the uptick in the US stock futures. Domestic data releases have been AUD-supportive as well.

Australia's Building Permits, or the number of approvals for new construction projects, rose 14.3% year-on-year in October following September's 8.8% jump, the data released early Monday showed. Australia's current account surplus narrowed to AUD 10 billion in the third quarter from AUD 16.3 billion in the second quarter.

Technical levels

AUD/USD

Overview
Today last price	0.7355
Today Daily Change	0.0016
Today Daily Change %	0.22
Today daily open	0.7339

Trends
Daily SMA20	0.7291
Daily SMA50	0.7186
Daily SMA100	0.7191
Daily SMA200	0.6861

Levels
Previous Daily High	0.7438
Previous Daily Low	0.7338
Previous Weekly High	0.7399
Previous Weekly Low	0.7264
Previous Monthly High	0.7438
Previous Monthly Low	0.699
Daily Fibonacci 38.2%	0.7376
Daily Fibonacci 61.8%	0.74
Daily Pivot Point S1	0.7306
Daily Pivot Point S2	0.7273
Daily Pivot Point S3	0.7207
Daily Pivot Point R1	0.7405
Daily Pivot Point R2	0.7471
Daily Pivot Point R3	0.7504

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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