FxWirePro: AUD/USD erases early gains, Delta variant spooks Aussie

AUD/USD chart - Trading View 

AUD/USD erases early gains and was trading 0.06% lower on the day at 0.7504 at around 08:40 GMT.

The new Delta variant probes the market’s risk appetite, while mixed Fedspeak and pre-ADP caution recently restrict market moves.

Mixed official Chinese PMIs fail to impress the antipodeans. China’s NBS Manufacturing and Non-Manufacturing PMIs cross market consensus but stayed below priors.

China’s NBS Manufacturing PMI rose past 50.8 forecast to 50.9 but lagged behind the 51.00 prior. 

Further, Non-Manufacturing PMI also stayed below 55.2 prior despite crossing 52.7 market consensus with 53.5 readings for June.

According to latest Reuters poll, the Reserve Bank of Australia (RBA) is likely to maintain the Official Cash Rate (OCR) at a record low of 0.1% for the seventh straight meeting next Tuesday.

Market focus now on the US ADP Employment Change for June for clearer direction ahead of Friday’s US NFP. ADP is expected at 600K versus 978K prior.

Technical bias for the pair is biased lower. The pair is consolidating break below 200-DMA, scope for further downside.

Next major bear target lies at 61.8% Fib at 0.7379. Bearish invalidation only on retrace above 200-DMA.