FxWirePro: AUD/USD spikes on renewed China-Australia trade optimism, tests 200-DMA

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 1.98% higher on the day at 0.6857 at around 13:00 GMT.

Previous Week's High/ Low: 0.6821/ 0.6682

Previous Session's High/ Low: 0.6834/ 0.6688

Fundamental Overview:

Broad-based US dollar sell-off and the renewed China-Australia trade optimism buoys the pair.

Media reports showed that China is considering a partial end to its ban on imports of Australian coal.

Focus now on US ISM Manufacturing PMI release and the Fed December meeting minutes for impetus.

US ISM Manufacturing PMI is seen lower at 48.5 vs. the former release of 49.0. While the New Orders Index data is seen higher at 48.1 against 47.2 in the prior release.

Technical Analysis:

- AUD/USD breaks above 200-DMA

- Momentum is bullish, volatility is high

- Price action is above cloud, Chikou span is biased higher

- MACD is on verge of bullish crossover on signal line

Major Support and Resistance Levels:

Support - 0.6745 (21-EMA), Resistance - 0.6850 (200-DMA)

Summary: AUD/USD pivotal at 200-DMA. Decisive break above will propel the pair higher.