AUD/USD reclaims 0.7100 for the time being as China Caixin PMIs remain above 50.0

• Just-above-contraction China PMI holding above 50.0 keeps the Aussie propped up for now.
• Autralia’s  bumper trade balance comes at a cost of exports declining by -1%.

The AUD/USD is trading just north of the 0.7100 barrier once again after surging higher in the Pacific-Asia session, helped along by Chinese Caixin Manufacturing PMI data that managed to hold above the 50.0 critical level.

China Caixin Manufacturing PMI stagnates at 50.1 in October, but beats estimates

China’s Caixin PMI for October managed to hold above the expected contraction to 49.9, clocking in at 50.1 versus the previous reading of 50.0, but broader manufacturing PMIs from China are showing rising threats of contraction. Despite significant headwinds, Aussie bulls are propping up the AUD/USD in Thursday’s early session, driven by Australia’s record-setting $3.017 billion trade balance figures reported early in the day, but even that comes with dire caveats attached: Australia’s bumper trade balance reading comes as a result of a 1% decline in exports, with Australian imports just managing to hold steady at their 1% level.

AUD/USD levels to watch

Early Thursday’s bullish run into 0.7100 sees the Aussie still firmly constrained by the last three weeks’ of sideways  movement, and the next challenge for AUD buyers will come from the upper bound of consolidation near 0.7150, but the floor at 0.7050 is beginning to look significantly firmer.