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FxWirePro: AUD/USD consolidates above 21-EMA, sustained USD buying ahead of NPF data dents upside

AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading 0.06% lower on the day at 0.7302 at around 11:35 GMT

Previous Week's High/ Low: 0.7310/ 0.7169

Previous Session's High/ Low: 0.7324/ 0.7267

Fundamental Overview:

Aussie bulls largely ignored upbeat Chinese Services PMI and the prevalent risk-on environment.

Chinese Services PMI indicated a sharp expansion in the business activity in September and rose more than expected to 53.4.

Global risk sentiment got an additional boost after the Senate voted 50-48 to extend the debt ceiling until early December and avoid a default on the US government debt.

Caution ahead of Friday's release US NFP report which will influence market expectations about the likely timing of the Fed's tapering plan. 

Technical Analysis:

- AUD/USD is consolidating the previous session's break above 21-EMA

- The pair continues range trade above 200-week MA, weakness only on break below

- RSI is flat and is above the 50 level mark, while Stochs are biased higher

- Price action is consolidating break into daily cloud and is trading shy of 55-EMA resistance

Major Support and Resistance Levels:

Support - 0.7211 (200-week MA), Resistance - 0.7330 (55-EMA)

Summary: AUD/USD near-term direction is turning bullish as the pair tries to consolidate above 21-EMA. Focus on US non-farm-payrolls data for impetus. 
 

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