FxWirePro: AUD/USD retraces upbeat China PMI-led gains, risk-off keeps bias lower

Chart - Courtesy Trading View 

AUD/USD was trading 0.39% lower on the day at 0.6732 at around 10:30 GMT, slips below 5-DMA. 

The pair fails to build onto previous session's momentum, extends choppy trade below 200-DMA. 

US ISM Manufacturing PMI on Wednesday showed New Orders Index jumped to 47.0 from the expectations of 43.7 and the former release of 42.5.

Further, the Manufacturing Price Paid climbed to 51.3 vs. the consensus of 45.0 and prior 44.5, suggesting that Producer Price Index (PPI) might deliver a surprise upside ahead.

Data shows that the US inflation situation is getting complex and Federal Reserve (Fed)  is likely to strengthen its defense in the battle against persistent inflation.

Fed chair Jerome Powell has been reiterating that a consideration of a premature rate cut could have a devastating impact on the inflation situation.

Market mood is displaying caution as investors worry that more rates from the Federal Reserve will push the United States economy into a recession. 

Risk-off benefits the safe-haven Greenback and contributes to driving flows away from the risk-sensitive Aussie.

Support levels - 0.6689 (Lower BB), 0.6663 (50% Fib)

Resistance levels - 0.6791 (200-DMA), 0.6818 (110-EMA)

Summary: AUD/USD is extending choppy trade below 200-DMA. Technical bias remains bearish. Scope for more weakness. Bearish invalidation only above daily cloud.