FxWirePro: AUD/USD set to extend bullish momentum, upbeat Chinese PMIs support

AUD/USD chart - Trading View 

AUD/USD has reversed early losses and edged higher from session lows at 0.7346 to hit fresh multi-month highs at 0.7381.

Upbeat Chinese PMIs which show a surprise expansion in the manufacturing sector reinforce speculation about a faster-than-expected economic recovery.

Data released earlier today showed China's NBS Manufacturing PMI came in at 51 in August, well above expectations for 48.7.

Further, the Non-Manufacturing PMI rose to 55.2 in August from July's 54.2 and bettered estimates for 52.1. 

The Aussie dollar is drawing bids following the release of China's PMI data, bullish momentum set to continue.

Technical studies are strongly bullish. Price action is consolidating break above 200W MA. Scope for test of 78.6% Fib at 0.7573.

Sino-Australian tensions could act as a drag. Immediate support lies at 5-DMA at 0.7282. Failure to hold above 200W MA negates upside bias.