AUD/USD struggling to retake the 0.75 handle as Chinese PMI figures fail to spark
- Weakening AUD clattering across the floor as a dovish RBA continues to torpedo the Aussie.
- Chinese PMI data couldn't drive the AUD/USD in the early Asia session.
The Aussie is trading near yesterday's lows moving through the Asia session, bouncing around the 0.7490 level after slipping once again on Tuesday and losing the 0.7500 handle.
The AUD/USD slumped for the latter half of April, declining into an eleven-month low of 0.7472 on the first day of May's trading as the Aussie gets hit by a dovish Reserve Bank of Australia in the face of softening economic indicators for Australia's economy, and a strengthening Greenback bolstered by rising interest rates in the US and climbing US Treasury yields.
China April factory growth edges up marginally, export orders shrink: Caixin PMI - Reuters
AUD bulls would have hoped for a positive boost from China's Caixin Manufacturing PMI, which posted a forecast-beating 51.1 versus the expected contraction of 50.9 and posting a minor uptick on the previous reading of 51.0. However, knock-on volatility was limited for the Aussie and the AUD/USD barely registered the lift in China manufacturing data.
FOMC Preview: Fed to pause for breath this week - ING
Thursday will bring Trade Balance data for Australia at 01:30 GMT, but before that will be the US FOMC Monetary Policy Meeting later today at 18:00 GMT. The FOMC is expected to hold steady on rates this week, but many traders are pricing in a further rate hike within the next few months.
AUD/USD levels to watch
The Aussie's technical outlook remains unchanged, and as FXStreet's own Valeria Bednarik noted, "the pair is still biased lower according to technical readings in the 4 hours chart, as the price is further below a bearish 20 SMA, while technical indicators stalled their declines well below their mid-lines, but with no signs of changing their previous course."
Support levels: 0.7470 0.7430 0.7400
Resistance levels: 0.7520 0.7550 0.7590