AUD/USD hit fresh session low, tests 1-hr 200-MA

• Aussie extends post-CPI drop.
• China Jan Mfg PMI at 8-month low.
• Aussie risks losing "high yielding" currency tag.

The Aussie dollar is extending the post-CPI drop possibly due to weak China manufacturing PMI release and the falling Aussie-US 10-year yield spread.

The currency tested the 1-hour 200-MA of 0.8046 a couple of minutes ago and now trades at 0.8060 levels. China NBS January manufacturing PMI printed at 51.3, the lowest since May vs forecast of 5

1.5. As per Reuters report, the PMI was likely hit by pollution crackdown and higher financing costs.

Meanwhile, NBS Jan non-manufacturing came-in at PMI 55.3, highest since September, but is offering little support to the AUD. Further, the 10-year Aussie-US yield spread has dropped to the lowest since March 2001. So, the 1-hour 200-MA support may not hold.

AUD/USD Technical Levels

A 1-hour close below 0.8046 (1-hour 200-MA) would open doors for a deeper pullback to 0.80 (psychological support) and 0.7956 (Jan. 23 low on 1-hour chart). On the higher side, breach of resistance at 0.8082 (1-hour 100-MA) could yield re-test of 0.8105 (Jan. 30 high of 1-hour) and 0.8136 (Jan. 26 high).