AUD/USD resumes decline towards 5-DMA on poor China PMI

A little hope for recovery in AUD/USD crumbled in Asia, after the Caixin Chinese manufacturing sector activity report came in well under expectations.

AUD/USD back in the red post-China PMI

Currently, the AUD/USD pair trades -0.05% to 0.7652, reversing a recovery-attempt from ahead of 0.7660 region. The Aussie is seen resuming the overnight retreat from twelve-week tops reached just shy of 0.77 barrier, as the bears returned to power after the sentiment around the AUD got dented by poor Chinese manufacturing PMI data, which showed that output and new orders slowed down last month. China's Jan 207 Caixin manufacturing PMI came at 51.0 vs 51.8 expected and 51.9 last.

The steady decline in AUD/USD can be also attributed to a bout of profit-taking by the traders, after the bulls ran into 0.77 resistance, and as we head towards the main risk event for today, the US labour market report.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7699 (multi-week high) above which gains could be extended to the next hurdle located 0.7714 (daily R1) and 0.7750 (psychological levels). On the flip side, the immediate support located at 0.7642 (daily pivot). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7608 (5-DMA) and below that 0.7583 (10-DMA).