China's Manufacturing PMI beats estimates, fails to lift AUD/USD

• China's NBS Manufacturing PMI (Sep) came in slightly higher than expected, but remained below 50. 
• The contraction in China's manufacturing activity is likely keeping the AUD bulls at the bay. 

AUD/USD is seeing little action and continues to trade largely unchanged on the day despite an above-forecast China data. 

China's Manufacturing PMI ticked higher to 49.8 in September from August's print of 49.5, the National Bureau of Statistics reported a few minutes before press time. Markets were expecting the PMI to print at 49.7. 

Meanwhile, the Non-Manufacturing PMI (Sep) came in at 53.7, missing the expected print of54.2 and down from the preceding month's figure of 53.8. 

So far, the above-forecast manufacturing data has failed to put a bid under the AUD. The AUD/USD pair is trading at 0.6756 – a level seen ahead of Chin's data – representing marginal losses on the day. 

It is worth noting that while the index bettered estimates, it remained below 50, highlighting contraction in the manufacturing activity. That could be the reason behind Aussie's last lackluster response to China's data. The AUD is widely considered a proxy for China. 

Looking forward, the AUD/USD may extend losses if China's Caixin Manufacturing PMI (Sep), which focuses on the small and medium-sized export-oriented units, prints below estimates. The data is scheduled for release at 01:45 GMT. 

Technical levels