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  • AUD/USD fails to extend the corrective pullback from intraday low.
  • China’s Caixin Manufacturing PMI drops to 51.5 in January.
  • Risks dwindle amid mixed clues, market chatters drive silver as restrictions on US equities remain firm.
  • US ISM Manufacturing PMI, social media platform talks should be followed closely.

AUD/USD fizzles the corrective pullback from 0.7605 around 0.7645, currently near 0.7638, during the early Monday’s trading. The pair’s recent weakness could be traced from weaker-than-expected Chinese data and risk-off mood.

China’s Caixin Manufacturing PMI follows the official readings while declining from 52.7 market consensus to 51.5 in January. During the weekend, China’s official NBS Manufacturing PMI dropped below 51.6 forecast to 51.3 while Non-Manufacturing PMI dropped to 52.4 from 52.6 market consensus.

Read: Chinese Caixin Manufacturing PMI Jan missed: 51.5 vs exp 52.6; prev 53.0, AUD holds

Earlier in the day, Australia’s AiG Performance of Mfg Index rose to 55.3 from 52.1 in January while TD Securities Inflation eased to 0.2% from 0.5% MoM. Further, Australia and New Zealand Banking Group’s (ANZ) Job Advertisement gauge for January eased to 2.3% from 9.2%.

Market sentiment wobbles amid talks over the surge in silver demand and anticipated run-up on the social media platforms like Twitter and Reddit. After wild moves in equities, traders recently have targeted silver prices, up around 5.0% near a six-month high. The same pushed some of the trading avenues like Apmex to reject taking orders of the white metal in anticipation of a regulatory move.

It should be noted that the jump in vaccinations and a commensurate reduction in the coronavirus (COVID-19) cases try to placate the market bears but the EU-UK tussle and Australia’s fresh lockdown, a five-day gig in Perth, challenge the optimists.

Against this backdrop, S&P 500 Futures print 0.30% loss while the US 10-year Treasury yields stay heavy around 1.07% by press time.

Read: S&P 500 Futures drop to one-month low amid market frenzy

Given the lack of remaining data for publishing in Asia, AUD/USD traders should follow market sentiment, which in turn requires buyers to stay cautious. Though, likely weakness in the US ISM Manufacturing PMI, expected 59.5 from 60.3, can trigger consolidation.

Technical analysis

A sustained downside break of six-week-old horizontal support, around 0.7640, directs AUD/USD sellers toward 50-day SMA, at 0.7600 now.