AUD/USD holding 0.7350 on better-than-expected Caixin PMI headline

• The Aussie remains upright as buyer’s remain confidence heading into the new week.
• Despite weak underlying, China Caixin PMI data provides further support for the upside.

The AUD/USD finds itself trading into the 0.7350 level, with intraday support coming from a better-than-expected Caixin PMI from China, while the 90-day extension on January’s tariff action between the US and China is helping to revive broader risk appetite.

China Caixin manufacturing PMI showed new export orders extended decline in November

China’s Monday Caixin PMI reading may have managed to beat expectations, printing at 50.2 versus the forecast 50.0 (last 50.1), the underlying figures reveal a cautionary note: the sub-index for new export orders in November shrank to 47.7, a decline from the previous month’s 48.8.

The G20 Leader’s Summit over the weekend saw a temporary de-escalation in trade war tensions between the US and China, with President Trump and China’s Xi agreeing to hold off on any further tariffs or tariff rate hikes for another 90 days, easing market tensions about January’s planned tariff hikes where the US was set to increase tariffs against China to 25%, and the extension will see the two sides returning to the negotiations table.

AUD/USD Technical Levels