AUD/USD - No reaction to China Caixin Mfg. PMI

• China’s manufacturing sector continued to expand at the start of 2018.
• Aussie turns a blind eye towards China PMI release.
• Ahead of the PMI release, the currency pair found takers below key trendline.

The Caixin China general manufacturing PMI for January printed in line with the estimate of 51.5. The official report says-

• Output growth hit a 13-month high in January.
• Growth supported by further, albeit slightly softer, increases in the total new work and new export sales.
• Input cost inflation eased to a five-month low and factory gate charges rose only slightly.

However, the Aussie dollar is not impressed. Having clocked a low of 0.8034 earlier today, the currency pair is now trading in a sideways manner around 0.8050 levels.

The minor recovery from the low of 0.8034 means the support of the rising trendline (drawn from the Dec. 11 low and Jan. 10 low) is still intact. That said, the ascending trendline could be breached soon, courtesy of the narrowing AU-US yield differential, slightly hawkish Fed and previous day's bearish outside day candle.