AUD/USD remains flat lined despite upbeat China Caixin PMI

A better-than-expected China Caixin PMI hasn’t boosted the demand for the Aussie dollar, leaving the AUD/USD pair flat around 0.7945 levels. 

China Caixin Manufacturing PMI for August came at 51.6 vs 50.9 exp and 51.1 last. The details show that the new business rose at the quickest rate for over three years.

Rising trend line intact

The drop to 0.7871 seen yesterday in Europe was quickly undone in the US session on broad based USD selling. The spot ended at 0.7946, thus keeping the trend line sloping upwards from the June 2 low and July 7 low intact. 

Focus on US data

The focus today is on the US wage growth numbers, scheduled for release at 12:30 GMT. A strong data could yield a steeper yield curve and boost the demand for the US dollar. 

AUD/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik says, “The 4 hours chart shows that the latest advance left the price above a horizontal 20 SMA and the 50% retracement of its July/August decline at 0.7935, although in the same chart, the Momentum indicator remains below its mid-lines, as the RSI indicator aims modestly higher around 53. The pair has a major resistance at 0.7965, where the pair topped mid August and it also has the 61.8% retracement of the mentioned slide, with a break above the level opening doors for an advance up to 0.8000 and beyond, should US employment data to be released early Friday disappoints.”