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AUD/USD chart - Trading View
AUD/USD has erased early losses and was trading 0.25% higher on the day at 0.7720 at around 02:40 GMT.
Aussie largely ignores downbeat Chinese Caixin PMI data and remains resilient amid expectations for continued recovery in global activity.
That said, upside appears to be limited on potential US dollar rebound amid growing concerns over worsening coronavirus contagion globally.
On the data front, China Caixin Manufacturing PMI fell to 53.00 in December from November's 54.9, missing the expected reading of 54.9.
The government PMI also declined to 51.9 in December from 52.1 in November, data released last week showed.
From a technical perspective, the pair trades with a strong bullish bias. Momentum with the bulls and scope for test of 88.6% Fib at 0.7836.
Overbought oscillators may cause some minor pullbacks. Dips are likely to find strong support at 21-EMA. Breach below could see shift in near-term dynamics. Major weakness only below 200-DMA.
