AUD/USD crosses 0.7700 despite mixed China PMI data

AUD/USD rises to the fresh high since April 2018 following China’s NBS PMI data.
The headline Manufacturing PMI eased to 51.9 but Non-Manufacturing PMI jumped to a three-month high of 55.7.
Risk-tone remains positive tracking Wall Street gains and Brexit deal passage amid a light calendar.
US stimulus, virus updates are the key before the year ends.

Anil Panchal FXStreet

AUD/USD jumps to the highest in 32 months while flashing 0.7706 top during early Thursday. In doing so, the Aussie pair cheered upbeat risk-on mood while also taking positive clues from the mixed readings of China’s official Purchasing Manager’s Index (PMI) for December.

As per the National Bureau of Statistics (NBS) of China, December’s Manufacturing PMI eased from 52.4 prior and 52.0 forecast to 51.9 while the Non-Manufacturing PMI rose past-52.4 forecast and 56.4 previous readouts to 55.7.

Read: China NBS Manufacturing PMI eases to 51.9 in December, AUD/USD crosses 0.7700

Other than the mixed data from the biggest customer, AUD/USD buyers also cheer US dollar weakness and the mild risk-on sentiment. The US dollar index (DXY) dropped to the fresh low since April 2018 the previous, currently down 0.05% around 89.57, as policymakers struggled to pass $2,000 paychecks while the coronavirus (COVID-19) woes regain traction at home.

On the contrary, global markets expect the stimulus to roll out sooner as Joe Biden is up for taking the White House in January. Also favoring the risks could be the covid vaccine developments.

Meanwhile, the latest news that the US sent two bombers to the Middle East and two guided missiles to the Taiwan Strait challenges the risks. Further, chatters that Sydney is up for extra activity restrictions due to the latest virus resurgence also probe the AUD/USD buyers amid a light calendar.

That said, S&P 500 Futures print 0.10% gains while Australia’s ASX 200 drop 0.64% by press time.

Looking forward, a lack of major data/events and the New Year Eve holidays in multiple markets will keep challenging the AUD/USD moves. However, the bulls are likely to keep the rein by the end of 2020.

Technical analysis

Having successfully breached the 32-month top of 0.7675, AUD/USD is ready to challenge April 2018 peak surrounding 0.7815. Meanwhile, any downside below December 17 top near 0.7640 can probe the bulls for a short-term.

Additional important levels

Overview
Today last price	0.7701
Today Daily Change	25 pips
Today Daily Change %	0.33%
Today daily open	0.7676

Trends
Daily SMA20	0.7543
Daily SMA50	0.7362
Daily SMA100	0.7281
Daily SMA200	0.6997

Levels
Previous Daily High	0.7687
Previous Daily Low	0.7602
Previous Weekly High	0.7619
Previous Weekly Low	0.7461
Previous Monthly High	0.7438
Previous Monthly Low	0.699
Daily Fibonacci 38.2%	0.7654
Daily Fibonacci 61.8%	0.7634
Daily Pivot Point S1	0.7623
Daily Pivot Point S2	0.7569
Daily Pivot Point S3	0.7537
Daily Pivot Point R1	0.7708
Daily Pivot Point R2	0.774
Daily Pivot Point R3	0.7794

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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