AUD/USD isn’t impressed by upbeat China services PMI

A better-than-expected Caixin China services PMI data got little attention from the AUD/USD pair, which continues to trade on a weaker note around 0.7425 levels.

Tracks gold prices

The Aussie dollar closely mimics the action in the gold prices. The yellow metal spiked in early Asia following Italian referendum results, but quickly surrendered gains.

The retreat in the yellow metal from the session highs is keeping the AUD under pressure despite signs that the Italy-led risk-off could be short lived.

AUD/USD Technical Levels

A break above 0.7433 (10-DMA) would open up upside towards 0.7469 (Friday’s high) and 0.75 (zero figure) levels. On the lower side, breach of support at 0.7421 (23.6% of Nov 8 high - Nov 21 low) could yield a sell-off to 0.74 (zero figure) and 0.7384 (rising trend line drawn from Nov 21 low and Dec 1 low).