FxWirePro: AUD/USD upside capped at 5-DMA, sideways grind likely

AUD/USD chart - Trading View 

AUD/USD was trading 0.27% higher on the day at 0.7729 at around 07:00 GMT.

Price action is within daily cloud and recovery lack traction with upside being capped below 5-DMA.

Trading remains muted amid mixed data and long weekend in the US on account of Memorial Day.

On the data front, China NBS Manufacturing PMI eased below 51.1 forecast and prior to 51.1 in May.

Meanwhile, China Non-Manufacturing PMI printed at 55.2, marking a big beat on market consensus at 52.7 and 54.9 previous readouts. 

Further, the Australia and New Zealand Banking Group’s (ANZ) Business Confidence and Activity Outlook for May dropped below 7 and 32.3% levels to 1.8 and 27.1% respectively.

Escalating Sino-American tussles test the market optimism, while hopes of further stimulus from the US keep downside limited.

Technical indicators are inconclusive. Breakout of daily cloud will provide a clear directional bias.