AUD/USD hits fresh session high on above-forecast China Caixin Manufacturing PMI

• China Caixin manufacturing PMI for March bettered estimates, sending AUD/USD higher by seven pips to a fresh session high of 0.7127. 
• The currency pair could rise further, tracking the risk-on in the equities. 

AUD/USD hit a fresh session high of 0.7127 a few minutes ago, possibly in response to better-than-expected China data.

Caixin manufacturing PMI, which surveys the small and medium-sized export-oriented units, ticked higher to 50.8 in March, beating the expected reading of 49.9 by a big margin.

The return to expansionary territory (50) may alleviate concerns of a deeper slowdown in the world's second-largest economy. So far, however, the AUD is struggling to cheer the upbeat data. The seven-pip rise to fresh session highs seen post-PMI has been erased. As of writing, the pair is trading at 0.7121.

However, equities are flashing green - the futures on the S&P 500 are currently up 0.65 percent. Hence, the AUD could continue to grind higher during the day ahead, more so, as China's NBS PMI numbers, released over the weekend, also bettered estimates.

Further, TD securities' inflation gauge for March came in at 0.4 percent month-on-month earlier today vs 0.1 percent in February. The National Australia Bank's business conditions index for March also ticked higher to 7, beating the estimated drop to 2 by a big margin.

Technical Levels