FxWirePro: AUD/USD Trade Idea

AUD/USD chart on Trading View used for analysis

• AUD/USD rejected at session highs at 0.7166. The pair has slipped below 5-DMA and has broken below 1H 200 SMA.
   
• Data released earlier today showed Australia Q4 Capex rose a solid 2% q/q, in contrast to yesterday’s very weak construction work done numbers.
   
• However, data from China showed manufacturing activity gauge hit a 3-year low in Feb as export orders fell at the fastest pace since February 2009. 
   
• The official Purchasing Managers' Index (PMI) fell for the third straight month, dropping to 49.2 in February. 
   
• RSI and Stochs converging nicely for futher weakness on the hourlies. Scope for test of trendline at 0.7070. 
   
• Focus on U.S. weekly jobless claims report (13:30 GMT), along with Q4 GDP report and Kansas Fed manufacturing activity report (16:00 GMT) for further impetus.

Support levels - 0.7070 (cloud, trendline, Feb 21 low), 0.7056 (Feb 11 low)

Resistance levels - 0.7139 (20-DMA), 0.7153 (55-EMA), 0.7190 (110-EMA)

Recommendation: Good to go short on upticks, SL: 0.7170, TP: 0.71/ 0.7070

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