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  • AUD/USD remains positive after China’s activity data for November flashed welcome signs.
  • November’s China NBS Manufacturing PMI, Aussie TD Securities Inflation flashed more than expected results.
  • Market mood stays cautious optimistic amid vaccine hopes, Brexit jitters and Aussie-China tussle.

AUD/USD rises to 0.7405, up 0.31% intraday, during Monday’s Asian session. In doing so, the pair cheers welcome prints of China’s official activity numbers for November, as well as vaccine hopes, near the fresh monthly high, marked earlier in the day, around the September top.

China’s November month NBS Manufacturing PMI grew past-51.5 forecast and 51.4 previous to 52.1 while the Non-Manufacturing PMI rose beyond 56.2 prior and 52.1 expected to 56.4.

Read: China data dump beats expectations

Earlier in the day, Australia’s TD Securities Inflation grew past-1.1% YoY to 1.4% whereas the monthly figures reversed -0.1% prior with +0.3% in November. Further, Australia’s Private Sector Credit eased in October, to 1.8% from 2.0%, while the Aussie third quarter (Q3) Company Gross Profits stepped back from 4.5% market consensus to 3.2% QoQ.

Other than the upbeat data, broad US dollar weakness also favors AUD/USD buyers. US dollar index (DXY) recently dropped to the lowest since April 2018.

Markets sentiment juggles between the coronavirus (COVID-19) vaccine hopes and the trade/political tension between Australia and China, as well as the Sino-American tussles. Also challenging the risk-on mood could be mixed updates concerning Brexit and the covid fears ahead of the vaccine arrival.

Against this backdrop, S&P 500 prints mild losses while stocks in Australia and Japan follow the suit.

Looking forward, a lack of major data/events may keep the AUD/USD traders directed towards risk catalysts for fresh impulse.

Technical analysis

Unless declining back below 0.7345/40 area, comprising highs marked between mid-September and November 17, AUD/USD bulls can keep July 2018 top surrounding 0.7485 on the radar.