AUD/USD trims upbeat Chinese PMI-led recovery gains

The AUD/USD pair trimmed upbeat Chinese manufacturing PMI-led recovery gains to session peak and has now retreated back marginally below 0.7400 handle.

After yesterday's sharp sell-off, erasing all of its gains posted in the previous four trading session, the pair staged a goodish recovery during Asian session on Thursday and was supported by stronger-than-expected Chinese manufacturing PMI print for the month of November. In fact, the official reading came-in at 51.7 as compared to 51.0 expected and 51.2 recorded in the previous month. Being Australia's largest trading partner, Chinese economic data has a lasting influence on the Australian Dollar.

The pair, however, failed to build on early gains as growing expectations of further Fed rate-hike actions, beyond December meeting, continues to underpin the greenback and weighing on higher-yielding currencies - like the Aussie.

Later during NA session, traders will take fresh cues from the usual weekly jobless claims and ISM manufacturing PMI from the US. Friday's key US monthly jobs report (NFP) remains important trigger for the pair's next leg of directional move.

Technical levels to watch

A follow through selling pressure below 0.7380-75 immediate support now seems to accelerate the slide further towards 0.7340-35 support area before the pair eventually drops to test Nov. monthly lows support near 0.7310 region. On the upside, momentum above session peak resistance near 0.7420 is likely to gain further traction and lift the pair immediately towards 0.7445-50 resistance area en-route 0.7480-85 strong resistance.