After a busy night, the Asian session has started on a quiet note. The AUD/USD hasn’t reacted all that much to the data out from China today, even though it was positive.

Chinese Manufacturing PMI was a slight beat on expectations, but did little to move markets.

Private sector credit was also slightly up, but the news didn’t impact the AUD/USD either.

For the most part it appears markets are actually waiting on more developments on the trade saga given the headlines overnight. The Chinese response will be in focus today.

Aussie Outlook

The AUD/USD is now below major resistance at 0.7300 and 0.7350. Price bounced off the short-term support at 0.7240 and that means the next key support level will be 0.7200.

It is hard to know exactly how the USD will respond and that might be more important than the AUD itself.

That said, I am keeping a bearish stance on the Aussie and will be looking for the next leg down to 0.7200 once we clear S1.