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AUD/USD sees little action after China PMI release

2018-6-1 10:22:05Trading Strategies
AUD/USD sees little action after China PMI release

China Caixin Purchasing Managers' Index (PMI), which focuses on small and medium-sized export-oriented units, shows manufacturing sector expanded at a steady pace in May, but export orders dropped.


The headline figure was unchanged at 51.1 in May from April, and just above economists' forecast for a slowdown to 51.0, according to Reuters news. The index remained above 50.00 (in expansion territory) for the 12th consecutive month, however, the index for new export orders remained in contraction territory (below 50.00).


The upbeat headline figure has failed to put a strong bid under the Aussie dollar, leaving the AUD/USD largely unaffected above the 200-hour MA, currently located at 0.7557.


At press time, the currency pair is trading at 0.7565 and could pick up a bid in North American session if the US wage growth numbers miss estimates by a big margin.


AUD/USD Technical Levels


The support is seen at 0.7557 (200-hour MA), 0.7555 (50-hour MA), and 0.7522 (May 23 low). Meanwhile, resistance is lined up at 0.7573 (session high), 0.7593 (previous day's high), and 0.7608 (50-day MA).