AUD/USD falling back as China PMI hits four-month low
- China PMI misses expectations, adds another weight to the Aussie to kick off the new week.
- The Aussie is drifting in Easter holiday markets as volumes remain thin.
The AUD/USD is falling back from a session high of 0.7695 to trade near 0.7680 following Chinese PMI figures that missed expectations and printed at a four-month low for the indicator.
The Chinese PMI came in at 51.0, a surprise contraction from the expected 51.7 and the previous period's reading of 51.6, and the miss for China data could sweep the AUD's legs out from under it and send the Aussie further down in the early week.
Volatility is up and volumes are restrained in the Asia session with Australian and New Zealand markets shuttered for the Easter Monday holiday, and markets are struggling to pick a direction heading into another NFP week, with US employment and wage growth figures hitting the markets on Friday.
AUD/USD Levels to watch
With Monday's early action restrained by holiday volumes, the AUD/USD pair is still trapped within last Friday's ranges, and as FXStreet's own chief analyst Valeria Bednarik noted, "the daily chart shows that the dominant bearish trend remains firm in place, as the 20 DMA extended its decline now a few pips above 0.7740, a major resistance, as the level stands for the 61.8% retracement of the December/January rally, while technical indicators in the mentioned time frame hold near oversold readings, with no signs of downward exhaustion. Shorter term, and according to the 4 hours chart, the pair could extend its latest upward correction, as it settled a couple of pips above a bearish 20 SMA, while technical indicators aim higher, with moderated strength, around their mid-lines, not enough, however, to suggest a bottom has been reached."
Support levels: 0.7645 0.7610 0.7575
Resistance levels: 0.7695 0.7740 0.7785