AUD/USD prints 7-month lows on Yuan slide, China data disappoints expectations

• Yuan slide pushes AUD/USD to seven-month lows below 0.6750.  
• China’s Caixin Services PMI (Jul) has printed below estimates.

The AUD/USD pair fell to a fresh seven-month low of 0.6748 a few minutes before press time and was last seen trading at 0.6775, representing 0.35% losses in the day.

The Aussie Dollar, a proxy for China, came under pressure, possibly due to the sell-off in China’s Yuan.

Notably, the offshore Yuan (CNH) fell beyond the psychological level of 7.00 per US Dollar earlier today on escalating Sino-US trade tensions.

The US President Trump on Thursday said that the US will impose an additional 10% levy on $300 billion worth of Chinese goods, ending the month-long trade truce. China has vowed to retaliate if the tariff hike takes effect on Sept. 1 as planned.

As of writing, the USD/CNH pair is trading at 7.06, having hit a high of 7.1085 earlier today.

The minor pullback in the USD/CNH seems to have helped the AUD/USD recover from seven-month lows.

China data disappoints

China’s Caixin Services PMI (Jul) came in at 51.6, missing the expected print of 52.9 and down from the preceding month’s reading of 52.00. The data was released at 01:45 GMT today.

The below-forecast China data could only add to the bearish tone around the Yuan and the Aussie Dollar.

Pivot levels