FxWirePro: AUD/USD dips below 0.70 handle, upbeat China Caixin PMI data unlikely to support, outlook bearish

AUD/USD chart - Trading View 

AUD/USD was trading 0.38% lower on the day at 0.6999 at around 04:40 GMT, outlook strongly bearish.

The pair erased some losses after Aussie gained some support from upbeat China Caixin PMI data, however upside likely to be limited.

Data released earlier today showed China's October Caixin Manufacturing PMI came in at 53.6, beating the expectation of 52.8 and up from the previous month's print of 53.0. 

Further Australia's Building Permits surged by 15.4% in September, beating the estimate of a 1.3% rise by a big margin. 

Upbeat data fails to impress Aussie bulls. Technical outlook remains bearish. US election uncertainty is also likely to keep a lid on gains.

Data Watch and Major Events:

The Reserve Bank of Australia is set to announce its policy decision Tuesday and investors are pricing in a rate cut to a record low of 0.1%.

Several macroeconomic data will also be in focus. Australia AIG Performance of Manufacturing Index for October, services index for October and the final version of September Retail Sales are some of the important ones.

The final readings of October PMIs for China, Australia and the US will also be released this week. Federal Reserve's interest rate decision will also have a major impact.

Support levels - 0.6991 (110W EMA), 0.6963 (23.6% Fib), 0.6800 (200-DMA)

Resistance levels - 0.7048 (21W EMA), 0.7096 (5W MA), 0.7117 (20W MA)

Summary: The pair trades with a bearish bias. Price action is below cloud and major EMAs. MACD and ADX support weakness. Bears target 23.6% Fib at 0.6963 ahead of 200-DMA at 0.68. Upticks on account of any positive data or events is likely to be limited. Bearish invalidation only above daily cloud.