FxWirePro: AUD/USD holds above 0.71 handle post RBA decision,upside remains capped on weak China PMI data

AUD/USD pared loses and edged higher following the RBA's monetary policy decision to hold rates.

• Data showed Chinese manufacturing sector activity continues to deteriorate, adding to pressure on the Aussie.
   
• China Feb Caixin Manufacturing PMI came in at 48.00 vs 48.4 expected and 48.4 last. While the official China manufacturing PMI fell from 49.4 in Jan to 49.0 in Feb, the weakest reading in more than four years.
   
• Price action broke below trendline support at 0.7120, close below will see further downside.
   
• Cloud-top at 0.7106 is seen as strong support on the downside, and the pair has held support, weakness seen only on breaks below.
   
• Immediate resistance on the topside is located at 0.7171 (10-DMA) ahead of 0.7178 (5-DMA).
   
• We see a bearish 5-DMA crossover on 10-DMA, MACD line has also shown a bearish crossover on signal line.
   
• Breaks below 0.7106 could see test of 0.7070/0.7040/0.70. Bearish invalidation on breaks above 0.7175