AUD/USD back to square one on Caixin PMI Manufacturing contraction

AUD/USD just enjoyed a mini roller coaster ride after better than expected Retail Sales, mixed Capex data and Chinese Caixin Manufacturing PMI miss. 

The spot jumped to a high of 0.7454 on strong retail sales data only to surrender entire gains and fall back to 0.7428 levels after the China Caixin manufacturing PMI dipped into contraction territory. 

The headline figure for the month of May arrived at 49.6 vs 50.1 exp, and was accompanied by slower increases in output and new orders. 

The Aussie 10-year yield, which had jumped to a session high of 2.424%, has surrendered gains as well. The yield currently trades around 2.399%. 

AUD/USD Technical Levels

The pair was last seen trading around 0.7425.

A break above would 0.7459 (10-DMA) would open up upside towards 0.75 (zero figure) and 0.7516 (May 25 high). On the downside, breach of support at 0.7416 (May 30 low) could yield a sell-off to 0.74 (zero levels) and 0.7368 (May 5 low). 

The daily chart confirmed ‘death cross’ - bearish 50-DMA and 200-DMA crossover -  in mid-May, which has been followed by lower top formation. The daily RSI is below 50.00, while a weak close today would confirm a bearish crossover on the MACD.