AUD/USD clocks 14-week high of 0.7712 after strong China PMI numbers

AUD/USD extended gains to a 14-week high of 0.7712 after the data released in China showed the pace of expansion in the manufacturing and non-manufacturing activity ticked up in June. 

China manufacturing PMI printed at 51.7, bettering the estimate of 51.00. The non-manufacturing PMI rose to 54.9, also beating the estimate of 54.5. 

Aussie 10-year yield lags

AUD bulls need to be cautious as the 10-year Aussie government bond yield hasn’t really responded positively to the upbeat China data. The yield was last seen trading flat lined on the day around 2.6%. 

Furthermore, the daily RSI on the AUD/USD is now overbought. The spot was last seen trading around 0.77 handle. With China data out of the way, focus shifts to Australia private sector credit numbers. Traders should also take note of the changes in the Open Interest in the AUD futures. 

AUD/USD Technical Levels

The weekly chart shows, the spot has repeatedly failed to hold above 0.77 handle over the last one year. A break above 0.7749 (Mar high) would expose 0.7778 (Nov high) and 0.7835 (Apr 2016 high). On the downside, breach of support at 0.7675 (session low) could yield a pullback to 0.7636 (June14 high) and 0.7610 (Apr 17 high).