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FxWirePro: AUD/USD subdued below 0.71 handle, dismal Australia Q3 CPI data weighs

AUD/USD chart on Trading View used for analysis

  • AUD/USD is trading 0.17% lower at 0.7092 at the time of trading.
     
  • Disappointing Australian CPI and Chinese manufacturing PMI reports continue to weigh down on the sentiment.
     
  • Q3 CPI came in largely at expectations, although the key q/q headline CPI missed forecasts slightly, coming in at 1.8% versus the expected 1.9%.
     
  • Further, China manufacturing PMI fell to 50.2 in October, the lowest reading in over two years, sending the AUD further lower.
     
  • The major hit session lows at 0.7072 before paring some losses to currently trade at 0.7092.
     
  • Major trend for the pair remains bearish. We see stiff resistance at 21-EMA at 0.7109. 
     
  • Bollinger bands are narrowing suggesting shrinking volatility, momentum studies are biased neutral.
     
  • Focus now on US employment data for further direction. 

Support levels - 0.7083 (5-DMA), 0.7040 (Lower BB)

Resistance levels - 0.7109 (21-EMA), 0.7182 (55-EMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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