AUD/USD ignores China PMI release, trade war fears could hurt

• AUD/USD has hardly moved after the release of China's Caixin manufacturing PMI.
• The escalating US-China trade tensions could hurt the Aussie dollar and risky assets.

China's Caixin manufacturing PMI, which focuses more on the small and medium sized export oriented units, fell to a eight-month low of 50.8 in July as expected.

The data comes a day after the release of the disappointing official PMI, but has not had any impact on the AUD/USD.

At press time, the currency pair is reporting marginal losses at 0.7416. 

A source told Reuters earlier today that the US is considering raising tariffs.  The bears may make a strong comeback if the Trump administration raises tariffs to 25 percent from 10 percent on $200 billion of imported Chinese goods.

The AUD may also feel the pull of gravity if the Chinese yuan tanks on fears of escalating US-China trade war.

AUD/USD Technical Levels

Resistance: 0.7429 (session high), 0.7457 (50-day MA), 0.7484 (July 10 high).

Support: 0.74 (5-day MA), 0.7370 (July 27 low), 0.7318 (July 20 low).