FxWirePro: AUD/USD slumps below 0.70 handle, sluggish China Caixin Manufacturing Purchasing Managers’ Index triggers downside

AUD/USD chart - Trading View 

AUD/USD slumps lower on the day, trades at 0.6993 at 05:35 GMT, down 0.40% on the day.

Aussie dented after Chinese PMI data misses estimates and mixed headlines on US-China trade truce. 

China’s Caixin Manufacturing PMI for June slumped to a five-month low of 49.4 missing forecasts at 50.00.

AUD/USD has paused upside at stiff resistance at 0.7035 (nearly converged cloud top and 110-EMA).

Stochs are at overbought levels and RSI has turned. Volatility is rising on the hourly charts.

Major trend in the pair has been bearish and break below 200H SMA (0.6954) will see downside resumption. Dip till 0.6835 (trendline support) then likely. 

Markets eye the Reserve Bank of Australia’s (RBA) monetary policy meeting, scheduled to be held on July 2 at 04:30GMT.

Focus also on U.S. ISM manufacturing data due later today for impetus ahead of the crucial NFP data later this week.

Support levels - 0.6993 (5-DMA), 0.6978 (55-EMA), 0.6954 (converged 21-EMA and 200H SMA), 

Resistance levels - 0.7035 (nearly converged cloud top and 110-EMA), 0.7101 (200-DMA), 0.7120 (trendline)

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