AUD/USD seesaws near weekly low after downbeat Aussie PMI data

• AUD/USD looks for clear direction around weekly lows.
• The Aussie PMIs fail to offer any strong hints while mixed signals kept rolling from the US-China trade front.
• Markets will continue following trade headlines for fresh impulse amid a thin economic calendar during the Asian session.

AUD/USD gyrates near the last-Friday levels after Markit/Commonwealth Bank published monthly Purchasing Manager Index (PMI) data. The Aussie pair struggles for direction while trading around 0.6790, amid mixed messages from the US-China trade front by the press time of early Friday morning in Asia.

Australia’s November month activity numbers, as published by Markit/Commonwealth Bank, slid into contraction. The headline Manufacturing PMI came in above 49.8 forecasts but slipped beneath 50.1 prior while Services PMI declined to 49.5 versus 53.5 expected and 50.1 earlier.

Hopes that the United States (US) may delay December 15 tariff increase on Chinese goods and the Beijing’s invitation to the US trade negotiators, as conveyed by the South China Morning Post (SCMP) and the Wall Street Journal (WSJ), recently tried to restore market sentiment. However, overall doubts concerning the future trade relations between the global superpowers remain as China now awaits US President Donald Trump’s move on the Hong Kong bill after Congress passed the much-criticized bill.

That said, the market’s risk tone has recently improved with the US 10-year treasury yields recovering to 1.78% while S&P 500 taking rounds to 3,100.

Investors will now concentrate on the trade/political headlines as the economic calendar is light during the Asian session. However, the US PMI numbers and Michigan Consumer Sentiment Index could keep the momentum traders happy during the US session.

Technical Analysis

A confluence of 21 and 50-day Exponential Moving Average (EMA), around 0.6825 now, restricts the pair’s near-term upside. On the contrary, a monthly low near 0.6770 could keep sellers entertained.