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FxWirePro: AUD/USD grinds higher, Aussie ignores big miss on Chinese Services PMI

AUD/USD chart - Trading View 

AUD/USD was trading 0.41% higher on the day at 0.7187 at around 04:00 GMT. Bias remains bullish.

The pair has largely ignored a big miss on Chinese Services PMI and is extending previous session's gains.

Data released earlier today showed China Caixin/IHS Markit July services PMI printed at 54.1, missing forecasts at 56.8 (vs 58.4 in June).

Earlier during the day, Australia’s AiG Performance of Construction Index rose to 42.7 compared to a -35.5 in the previous reading.

The Commonwealth Bank Services PMI eased to 58.2 in July from 58.5 prior. Further, Australian Home Loans for June reversed -7.6% earlier mark with +7.1% whereas Investment Lending for Homes also rose 8.1% from -15.6% prior.

Market sentiment remains mixed amid the US policymakers’ failure to deliver the much-anticipated stimulus and fresh optimism on the US-China trade front.

Major Support Levels: 

S1: 0.7145 (200H MA)

S2: 0.7084 (21-EMA)

S3: 0.6967 (50-DMA)

Major Resistance Levels: 

R1: 0.7257 (200W MA)

R2: 0.73 (Psychological mark)

R3: 0.7358 (Upper W BB)

Summary: The pair trades with a bullish bias. Price action has retraced brief dip below 200H MA. Scope for test of next major hurdle at 200W MA at 0.7257.

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