AUD/USD struggling to build on Chinese PMI-led gains

The AUD/USD pair held on to upbeat Chinese data led gains but has struggled to extend the momentum and remained capped below the 0.7670-75 immediate hurdle. 

As China proxy, a better-than-expected Chinese manufacturing PMI, coming in at 51.8 as against 51.7 expected, attracted some fresh buying interest around the major. Meanwhile, the non-manufacturing PMI jumped to 55.1 in March from the previous month’s print of 54.2.

This coupled with a mildly softer tone surrounding the US Dollar helped the pair to hold above 50-day SMA support near the 0.7635 region. However, the prevalent cautious sentiment around European equity markets, and recovering US treasury bond yields, capped further gains for perceived riskier, higher-yielding currencies - like the Aussie. 

Later during the NA session, the US economic docket would grab the attention and would be looked upon for fresh impetus. The US economic data due for release on Friday include - Core PCE Price Index, Personal Income / Spending data, Chicago PMI and Revised UoM Consumer Sentiment index.

Technical levels to watch

Immediate resistance is seen near 0.7670-75 area, above which the pair seems all set to head towards reclaiming the 0.7700 handle before heading towards its next hurdle near 0.7725-30 region. On the downside, 50-day SMA near 0.7630 region might continue to protect immediate downside, which if broken is likely to accelerate the slide towards 0.7600 round figure mark ahead of 0.7585 support.