AUD/USD Current price: 0.7302
- Chinese official PMI to set the tone in the Asian session.
- Aussie flat for the day against the greenback, but holding above 0.7300.
The AUD/USD pair surged to 0.7343, its highest in two months, as the positive tone of European indexes kept the commodity-linked currency afloat despite the greenback appreciated on the back of political jitters. Commodities remained on the winning side, adding support to the Aussie, which anyway eased alongside with Wall Street during US trading hours. The FOMC Minutes released late US session didn't affect the pair, which trades a handful of pips above its daily low of 0.7294. Australian data released at the beginning of the day was generally weak, but as expected, it didn't take its toll on the pair. Q3 Private Capital Expenditure fell 0.5% vs. an expected advance of 1.0%, while the October HIA New Home Sales index resulted at -0.8% against 1.1% in September. The country will release this Friday, October Private Sector Credit data but the market's attention will be on Chinese official manufacturing and non-manufacturing PMI for November.
Now trading barely above the 0.7300 level, the risk remains skewed to the upside, as the pair is firmly above its moving averages, with the 20 SMA advancing modestly above the 100 SMA, as technical indicators try to stabilize well above their midlines after correcting extreme overbought conditions. The pair could correct lower on a break below the mentioned daily low, targeting then the 0.7250 static support level. An unlikely break below this last should signal a downward extension for the following sessions while another attempt through 0.7340 should open doors for a steeper recovery.
Support levels: 0.7295 0.7250 0.7220
Resistance levels: 0.7340 0.7375 0.7400
View Live Chart for the AUD/USD
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