AUD/USD hits fresh 3-week highs above 0.7600 on China PMI

The AUD/USD pair is seen consolidating sharp gains above 0.76 handle, witnessed following the release of better-than expected Chinese Caixin manufacturing PMI report.

AUD/USD regains 0.76 barrier

Currently, the AUD/USD pair trades modestly higher at 0.7609, hovering close to fresh three-week highs reached at 0.7611 earlier on the day. The Aussie extends its upbeat momentum for the third straight session, now flirting with multi-week tops, as sentiment surrounding the AUD remains underpinned on the back of stronger Chinese manufacturing data, which eased concerns over China economic slowdown somewhat. China is Australia’s top trading partner. China's Caixin PMI for July outpaced expectations by over 2 full points.

Moreover, positive Asian equities combined with a minor-bounce seen in oil prices, also collaborated to the upside in the AUD/USD pair. Additionally, stalled recovery in the greenback against its major peers also kept the bids intact in the major. The US dollar remains largely weighed down by worse-than expected US GDP figures.

Markets now eagerly await the RBA policy decision due tomorrow for fresh direction on the Aussie pair, with markets expecting the central bank to  keep the policy steady in wake of upbeat Aus CPI data.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7650/58 (psychological levels/ Jul 12 high) above which gains could be extended to the next hurdle located at 0.7700 (round figure). On the flip side, the immediate support located at 0.7557/44 (5 & 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7500 (round number/ 1h 200-SMA).