Technical Analysis:
- AUD/USD surges past 0.72 handle after China posted solid manufacturing PMI data.
- Major trendline support seen at 0.7160, weakness only on break below.
- RSI has shown a rollover from oversold levels. Stochs are at oversold and rollover will support upside bias.
Fundamental Factors:
- The Aussie remains strongly bid as the bulls found renewed impetus from upbeat Chinese factories data.
- Risk-on environment prevalent in the markets also boosted investors’ appetite for the higher-yielding currency.
- Focus now on set of manufacturing PMI reports from the US due on the cards in the NA session.
Important Levels:
- Support: 0.72 (5-DMA), 0.7160 (major trendline), 0.7148 (May 30 low)
- Resistance: 0.7258 (Dec 22 high), 0.7305 (23.6% Fib), 0.7325 (20-DMA)
Recommendation: Good to go long o dips around 0.72, SL: 0.7160, TP: 0.7250/ 0.73/ 0.7330
FxWirePro Currency Strenght Index: FxWirePro's Hourly AUD Spot Index was at 86.3432(Bullish), while Hourly USD Spot Index was at -128.345 (Highly Bearish) at 0450 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
