FxWirePro: Aussie extends marginal gains, disappointing China PMIs to keep upside limited

AUD/USD chart - Trading View 

AUD/USD was trading largely rangebound with session high at 0.7310 and low at 0.7288.

The Australian dollar remains under pressure after disappointing China PMIs suggested the China's economy under pressure.

Data released earlier today showed China's factory activity slowed in Aug, while services sector slipped into contraction. 

China official manufacturing PMI fell to 50.1 in August from 50.4 in July, data from the National Bureau of Statistics (NBS) showed on Tuesday, against expectations at 50.2.

New orders contracted and a gauge for new export orders fell to 46.7, the lowest in over a year. Factories also laid off workers, at the same pace as July.

The official non-manufacturing PMI in August fell below the 50 mark to 47.5, down from July's 53.3, data from the NBS showed.

The official August composite PMI, which includes both manufacturing and services activity, fell to 48.9 from July's 52.4.

Poor data raised the likelihood of more near-term policy support from the People's Bank of China (PBOC) to boost growth.

Major Support Levels: 

S1: 0.7297 (21-EMA)

S2: 0.7228 (200H MA)

S3: 0.72

Major Resistance Levels: 

R1: 0.7396 (55-EMA)

R2: 0.74 (Psychological mark)

R3: 0.7420 (Cloud base)

Summary: AUD/USD was holding marginal gains. Choppy trade likely to continue as markets remain lackluster amid cautious mood ahead of US NFP.