China PMI beats estimates, will it help AUD/USD recover losses?

• China Caixin PMI beats estimates.
• AUD/USD recovers 10 pips from session lows.
• Downside exposed ahead of Powell's Senate speech

China's Feb Caixin manufacturing PMI, which surveys small and medium-sized export-oriented units, released a few minutes ago showed the pace of expansion in the activity improved to 51.6, beating the estimate of 51.3 expected and up from the previous month's print of 51.5.

However, the Aussie dollar has not picked up bid following the upbeat China data release. The AUD/USD was last seen trading at 0.7732 - up only 10 pips from the pre-data (session low) level of 0.7724.

Moreover, a combination of rising odds of faster Fed rate hikes, risk aversion, and weak domestic data will likely keep the Aussie on the back foot ahead of the new Fed Chair Powell's appearance before the Senate.

The pair may suffer another round of sell-off If Powell reiterates his strong views on the US economy and reinforces speculation that Fed will hike rates three more times this year.

AUD/USD Technical Levels

A break below 0.77 (psychological level) would expose support at 0.7625 (Oct. 27 low). A violation there would allow for a deeper sell-off to 0.7501 (December low). On the higher side, a move above 0.7763 (4h 5-MA) could yield a corrective rally to 0.7819 (resistance on 4- hour) and 0.7844 (4h 50-MA).