AUD/USD trims gains despite upbeat China PMI

• AUD/USD trades near 0.7392 versus 0.7408 early Monday. 
• China's strong PMI figures fail to elicit a positive reaction from the Aussie dollar. 

The data released early Monday showed China's economic activity extended its strong growth in November. So far, however, that has failed to put a bid under the China-sensitive Aussie dollar. 

China's official manufacturing purchasing managers' index (PMI) rose to 52.1 in November from 51.4 in October to reach its highest since September 2017. The official non-manufacturing PMI, which measures sentiment in the service and construction sectors, ticked higher to 56.4 – the highest reading since June 2012, according to South China Morning Post. 

A reading above 50.0 indicates expansion, while a reading below represents contraction.

As highlighted by PMIs, the continued expansion in both services and manufacturing sectors is positive for commodity dollars and risk assets in general. 

However, as noted earlier, AUD/USD buyers have remained on the fence. The currency pair is currently trading at 0.7392, representing a 0.22% gain on the day, having printed a high of 0.7408 ahead of the China PMI release. 

The pullback in the AUD could be associated with the 0.3% decline in the S&P 500 futures. The global equity markets look to be taking a breather, having chalked up stellar gains over the past few weeks on hopes for a swift global economic recovery on potential coronavirus vaccines and continued money printing by major central banks. 

Technical levels