FxWirePro: AUD/USD trades rangebound below 5-DMA, Aussie fails to cheer upbeat China Caixin PMI
AUD/USD chart - Trading View
AUD/USD was trading largely muted on the day at 0.7140 at around 05:10 GMT.
Aussie bulls fail to cheer upbeat China Caixin PMI. The pair range bound below 5-DMA.
China Caixin Manufacturing PMI rose to 52.8 in July from 51.8, beating the consensus estimate of 51.3.
Lack of progress in a new US coronavirus stimulus package which has stalled as Republicans and Democrats remain in a deadlock and misplaced optimism about coronavirus vaccines seem to cap gains.
Major trend in the pair remains bullish as evidenced by GMMA indicator. Intraday charts show minor weakness as the pair dips below 200H MA.
Overbought oscillators and bearish MACD line crossover on signal line add to the bearish pressure.
Pullbacks likely to be shallow. Strong support seen till 0.7058. Break below could see dip till 50-DMA at 0.6946.
Resumption of upside will see major hurdle at 200W MA at 0.7256. Bullish invalidation below 200-DMA.