AUD/USD prints session high above 0.71 on above-forecast China Caixin manfuacturing PMI

• The Caixin China manufacturing PMI for February bettered estimates but remained below 50 for the third consecutive month. 
• AUD is cheering a better-than-expected print and could rise further as a sub-index for new orders hit three-month highs. 

AUD/USD jumped 15 pips to a session high of 0.7109 immediate after the release of a better-than-expected forward-looking China manufacturing activity gauge. 

The Caixin China manufacturing purchasing managers' index rose to 49.9 in February from 48.3 in January, Caixin Media Co. and research firm Markit said a few minutes before press time. The data bettered market expectations of 48.5. 

Further, the new orders sub-index jumped to a three month high of 50.2.  

It is worth noting that Caixin focuses on the small and medium-sized export-oriented units. The rise in the new orders index, therefore, indicates an improvement in overseas demand. As a result, risky assets could pick up a strong bid, adding to the bid tone around the AUD. 

As of writing, AUD/USD, a proxy for China, is trading at 0.7105. 

Technical Analysis