FxWirePro: AUD/USD pauses upside at 200-DMA, poor China Caxin manufacturing PMI weighs

AUD/USD chart on Trading View used for analysis

• AUD/USD is trading 0.38% lower on the day at 0.7242 at 0455 GMT.
   
• The pair is slipping as poor China Caxin PMI data weighs on the antipodeans.
   
• Data released earlier today showed China's January Caixin PMI printed at 48.3 - the lowest level in nearly three years.
   
• Weak data stoked fears of a deeper slowdown in the world's second-largest economy, denting the antipodeans.
   
• Technical indicators do support further upside in the pair and the recent slide is not expected to continue.
   
• Price action is holding support at 1H 55 EMA and we see scope for major weakness only below 1H 200 SMA.
   
• On the upside, break above 200-DMA will resume bullish continuation. Scope then for test of 0.7393 (Dec 2018 high).

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-on-track-to-test-200-DMA-upbeat-Chinese-PMI-and-dovish-Fed-support-gains-1491842) has hit target levels.

Recommendation: Book partial profits. watch out for break above 200-DMA for further upside.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.