• AUD/USD edged lower on Monday as disappointing Chinese manufacturing data weighed on broader risk sentiment.
• China's factory activity in November contracted slightly as production growth came to a halt and new orders slowed, a private-sector survey showed on Monday.
The RatingDog China General Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to 49.9 in November from 50.6 in October, missing analysts' expectations of 50.5 in a Reuters poll. The 50-mark separates growth from contraction.
• Australian dollar often traded as proxies for global risk was sold earlier in November as tech stocks slid on doubts about sky-high artificial intelligence valuations, though they managed to find support from higher local yields as interest rate expectations diverged from the U.S..
• Looking ahead,investors will also be watching Australia’s GDP data on Wednesday, where expectations are centered on a 0.7% quarter-on-quarter rise.
• Immediate resistance is located at 0.6564(50%fib), any close above will push the pair towards 0.6586(Higher BB).
• Support is seen at 0.6506(38.2%fib) and break below could take the pair towards 0.6471(Oct 21st low).
Recommendation: Good to buy around 0.6530, with stop loss of 0.6480 and target price of 0.6600
