AUD/USD sticks to dismal Chinese PMI-led weakness, below mid-0.7200s

   “¢   The post-FOMC upsurge fails ahead of 0.7300 handle, near 200-day SMA.
   “¢   Dismal Chinese PMI weighs on Aussie and prompts some long-unwinding.
   “¢   Investors eye the keenly watched US monthly jobs report for fresh impetus.

The AUD/USD pair held on to the disappointing Chinese data-led weakness and is currently placed at the lower end of its daily trading range.  

The pair stalled dovish FOMC-inspired strong bullish run ahead of the 0.7300 handle, near the very important 200-day SMA hurdle on Thursday, and now seems to have snapped two consecutive days of winning streak.  

A goodish US Dollar rebound from multi-week lows capped the overnight up-move, with dismal China data exerting some fresh downward pressure on the China-proxy Aussie.  

Data released on Friday showed that China’s Caixin PMI index plunged to 48.3 in January and bolstered fears of a deeper near-term slowdown in the world’s second-largest economy.  

Currently hovering around the 0.7240-35 region, the pair has now erased all of the previous session’s gains to near two-month tops as the focus now shifts to the keenly watched US monthly jobs report (NFP).

This coupled with the incoming trade-related headlines will play an important role in providing some fresh impetus and determining the pair’s next leg of a directional move.

Technical levels to watch