FxWirePro: AUD/USD fades upbeat China Caixin manufacturing PMI led spike, bias lower

AUD/USD chart on Trading View used for analysis

• AUD/USD has retraced from session highs at 0.7109 and is currently trading at 0.7097 at 0405 GMT.
   
• The pair edged higher earlier in the Asian session after upbeat China Caixin manufacturing PMI data.
   
• China's February Caixin manufacturing PMI came in at 49.9 beating expectations at 48.5 and compared to 48.3 last, as production expanded slightly in February.
   
• Upside in the pair was limited. Fed Chair Powell's upbeat remarks on US economy keep the bid tone around the USD.
   
• Technical studies also support further weakness in the pair. Next bear target 0.7072 (daily cloud).
   
• Below daily cloud, we see little support till lower Bollinger Band at 0.7037.
   
• On the flipside, immediate resistance is seen at 0.7135 (converged 5-DMA and 21-EMA). Bearish invalidation only above 110-EMA.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-Trade-Idea-1504363) has hit TP1.

Recommendation: Stay short for further downside. 

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