AUD/USD bearish at 0.7560 headed in to Tokyo open and key Chinese data

• AUD/USD awaits Chinese data.
• AUD/USD downside opening up?

AUD/USD slipped a few pips further in early Asia, extending the downside from 0.7593 highs. Currently, AUD/USD is trading at 0.7562, down -0.04% on the day, having posted a daily high at 0.7571 and low at 0.7551.

The USD picked up some interest heading into and after the NY close which is hurting the antipodeans ahead of key Chinese data today. Caixin China Manufacturing PMI is due today along with the local Housing data. We already had the AiG Performance of Mfg Index (Nov) arriving at 57.3 vs  51.1 prior.

Recent domestic data for AUD

As a recap, however,  Q3 capex came in as expected at 1% and the figure that feeds into GDP. The estimates point to non-mining sectors driving capex activity going ahead, the data reinforcing the RBA’s message. Then, the number of Building Approvals for Oct rose 0.9%/m, better than the mkt f/c for a 1% drop and private sector credit rose +0.4%/mth in Oct, led by a +0.5%/mth growth in housing (owner-occupied +0.6%, investor loans +0.2%). However, the data has not been regarded as a game changer for the RBA, expected to keep its cash rate at 1.5% next week, (Dec 5).

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that, 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," Valeria added.

Meanwhile, Jim Langlands at FX Charts argues that another choppy session could be in store although he lean towards selling into rallies, looking for an eventual test of 0.7500, and lower, as we approach the next Fed meeting on Dec 13, (Sell AudUsd @ 0.7585. SL @ 0.7615, TP @ 0.7500).