AUD/USD - bid tone weakens on after China Caixin PMI

• AUD/USD has erased gains.
• China Caixin manufacturing PMI missed expectations.

The AUD/USD backed off from the session high of 0.7570 after the China Caixin PMI showed marginal deterioration in operating conditions in April.

China's Nov Caixin manufacturing PMI came in at 50.8 in April vs. 50.9 expected and 51.00 last. Caixin PMI focuses on small and medium-sized export-oriented (SMEs) units, while the official PMI (released yesterday) highlights the performance of the state-owned enterprises.

Despite signs of weakness at the SMEs, the Aussie has been able to avoid losses. As of writing, the currency pair is flatlined at 0.7564. The pair could regain the bid tone if the treasury yields weaken due to delay in a vote on the Republican tax bill.

Also, US ISM manufacturing PMI reading and comment from Fed officials could influence the pair.

AUD/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes-

"Technically the pair retains its bearish tone, as in the 4 hours chart, the price is retreating from a bearish 20 SMA, while technical indicators turned south within negative territory, after failing to overcome their mid-lines. Below the 0.7530 region, the downward momentum will likely accelerate, with the pair then targeting 0.7450."  

Support levels: 0.7530 0.7500 0.7450

Resistance levels: 0.7590 0.7630 0.7660