FxWirePro: AUD/USD holds above 5-DMA support, scope for test of 61.8% Fib at 0.7184

AUD/USD chart - Trading View 

AUD/USD has slipped lower from session highs at 0.6961, but upside bias intact.

Scope for improvement in US-China trade relations likely contributed to the latest wave of risk appetite helping push AUD/USD prices higher. 

U.S. IHS Markit flash Composite PMI for June printed at 46.8, which is a material improvement from the prior reading of 37.0 for May. 

Both the manufacturing and services sector components were reported above consensus estimates, but remains below 50, in the contraction mode. 

U.S. economic data showed business activity contracted for the 5th straight month in June, while sales of new single-family homes increased more than expected.

Major and minor trend in the pair are bullish. Price action is above cloud and major moving averages. 

The pair is edging higher in a 'Rising Channel' pattern and bounce off channel base has reinforced upside.

Scope for test of 61.8% Fib at 0.7184, ahead of 200W MA at 0.7273. Bullish invalidation only below 200-DMA.

Major Support - 0.6664 (200-DMA)

Resistance levels - 0.7070 (Upper BB)