AUD/USD higher at 0.7540 on Chinese data

Extending its Wednesday's rebound from 100-day SMA important support, the AUD/USD pair got a boost from Chinese PMI data and rose close to 0.7550 region. 

The official Chinese manufacturing PMI rose to 50.4 in August and moved to expansion territory. The reading was better-than 49.9 expected and market the highest reading since October 2014. Meanwhile, the pair's recovery momentum lacked conviction on the back of weaker-than-expected Australian monthly retail sales and second quarter Private Capital Expenditure figures. Australian retail sales remained flat in July as compared to an expected 0.3% growth, while capex plunged 5.4% in Q2, well below 4.2% decline estimated. 

Moreover, Wednesday's better-than-expected ADP report has raised expectations of a strong official jobs report on Friday and extended support to the greenback, restricting further upside for the pair. 

Ahead of the big event risk, traders would focus on Thursday's release of weekly jobless claims and ISM manufacturing index, later during NA session, in order to grab short-term momentum play.

Technical levels to watch

From current levels, momentum above 0.7550 immediate resistance is likely to boost the pair towards 0.7580-85 resistance zone ahead of making an attempt to reclaim 0.7600 handle. On the flip side, weakness below session low support around 0.7510 level is likely to drag the pair back towards 100-day SMA support near 0.7495 before the pair heads towards testing monthly low support near 0.7487 region.