AUD/USD: spikes on strong Chinese Caixin data ahead of RBA tomorrow

AUD/USD has spiked on the release of the Chinese Caixin data in an extension of the better bid tone in the Aussie dollar.

The China's Caixin PMI for July was a strong result ahead of the RBA meeting tomorrow and it beat expectations by over 2 full points.

"China's private manufacturing PMI survey for the month of July came in at 50.6 vs 48.7 exp and 48.8."

This, coupled with a poor US economy and a weak dollar has opened up speculation that the Aussie could maintain a strong tone into the RBA's meeting tomorrow where markets are on the fence as to whether they will hold or cut. Should the RBA hold then the Aussie could continue on its current northerly trajectory. 

AUD/USD levels

AUD/USD is bid and made it to the 0.76 handle on a spike. The next a key resistance target at 0.7675 recent highs and the 78.6% retracement at 0.7688. A break at 0.7688 opens the 3 rd May high at 0.7717. Strong support is located at the 50 day ma at 0.7435 guarding the 200 day ma at 0.7326 with the 2016 support line at 0.7301.