AUD/USD unmoved by upbeat China data, focus on Trump speech

Better-than-expected Caixin China manufacturing PMI release has failed to move the AUD/USD pair, leaving it unchanged around the session high of 0.7665 levels as investors await Trump speech.

The Caixin PMI came-in at 51.7, beating the estimated figure of 50.8. The government data- NBS PMI released earlier today also bettered estimate of 51.1.

Calm before storm?

President Trump is set to deliver his budget speech in a few minutes. Trump Bump could turn into Trump Slump if President Trump once again keeps mum about the details of the fiscal plan. Experts say it is likely to be a general policy outlook and not a detailed talk.

Risk sentiment could also take a hit if Trump talks about trade wars/trade protectionism and imposing tariffs on Chinese exports.

AUD/USD Technical Levels

A breakdown of support at 0.7618 (Feb 14 low) could yield a sell-off to 0.76 (zero figure), under which a major support is seen at 0.7520 (200-DMA). On the higher side, breach of 0.7678 (100-DMA) could see the pair revisit 0.7707 (Feb 27 high) and 0.7741 (Feb 23 high).