Light Early Bid Evaporates

AUD/USD has shed its earlier gains and last operates at $0.7388, little changed on the day. Above-forecast readings of China's official PMIs have failed to provide lasting support to AUD, with Australia's own data being a mixed bag. Simmering Sino-Australian tensions have acted as a limiting factor for the Aussie, with focus on the potential for Canberra taking Beijing to the WTO over their rapidly escalating trade dispute. In addition, China's Foreign Ministry spokesman tweeted a graphic suggesting that Australian soldiers have been complicit in war crimes in Afghanistan, drawing the ire of PM Morrison, who demanded apology and swift removal of the image. AUD/USD last trades at $0.7385, little changed on the day, after topping out at $0.7407 immediately after the release of Chinese PMIs. A move through Sep 1 & key bull trigger at $0.7414 would shift topside focus to Jul 9 & 10, 2018 highs of $0.7484. Conversely, a dip through the 20-EMA at $0.7293 would bring Nov 19 low of $0.7255 into play.

• AUD/NZD sits at NZ$1.0512, little changed, with the rate holding the prior trading day's range/continuing its sideways trade around the NZ$1.0500 mark. A fall through Nov 24 low of NZ$1.0473 would signal the resumption of the downtrend, exposing trendline support at NZ$1.0449. Bulls need a clearance of Nov 25 high of NZ$1.0563 before targeting the NZ$1.0628-31 area, which limited gains on Nov 13 - 17.
• AUD/CNH last seen at CNH4.8571, close to neutral levels after fading the earlier uptick. Technical conditions remain bullish, following the formation of a double bottom pattern and its confirmation upon a failed throwback onto the neckline & rebound above the 50-DMA. Bulls look for a rally above Oct 12/Sep 30 highs of CNH8708/80 before taking aim at the 100-DMA at CNH4.8853. Bears set their sights on the 50-DMA (CNH4.7970), which almost coincides with the round figure of CNH4.8000.