AUD/USD Price Analysis: Bulls approach 0.6700 despite disappointing Aussie, China statistics
|- AUD/USD bounces off intraday low to print mild gains.
- Australia’s Monthly CPI for October, China’s official PMIs for November printed downbeat figures.
- Convergence of the previous support line, two-week-old descending trend line appears the key for bulls.
- Sellers have a bumpy road ahead before taking control.
AUD/USD picks up bids to refresh intraday top near the 0.6700 threshold during early Wednesday, extending the previous day’s recovery. In doing so, the Aussie pair ignores downbeat prints of Australia’s monthly inflation numbers and disappointing activity data from Canberra’s biggest customer, Beijing.
Australia's Monthly Consumer Price Index (CPI) dropped to 6.9% YoY versus 7.4% expected and 7.3% prior. The inflation numbers defend the Reserve Bank of Australia’s (RBA) dovish bias and should have weighed the prices. On the same line, China’s officials NBS Manufacturing PMI dropped to 48.0 versus 49.2 expected and 49.0 prior. Further details mention that the Non-Manufacturing PMI also slumped to 46.7 from 48.7 prior and 51.7 expected.
It should be noted, however, that the 100-SMA defends AUD/USD bulls around 0.6660 amid sluggish oscillators.
Following that, a three-week-old horizontal support zone near 0.6590-85 and the 200-SMA support close to 0.6515 will be crucial for the pair sellers to watch.
On the contrary, recovery remains elusive below the 0.6770 resistance confluence including the previous support line from November 10 and a fortnight-long resistance line.
Even so, the monthly high of around 0.6800 acts as an extra filter to the north for the AUD/USD bulls to watch.
Overall, AUD/USD stays on the bear’s radar despite the latest rebound.
AUD/USD: Four-hour chart
Trend: Limited recovery expected
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