FXStreet (Guatemala) – AUD/USD is staying with the bid tone on the back of further upside in the Chinese data release today and is pressuring the key and pivotal resistance area.
AUD/USD has performed decisively bid today, having come from a low of 0.6998. The price is trying to push through and penetrate the 200 SMA at 0.7043 after making a high of 0.7049 so far, at time of writing.
First, the price rallied around the official China Sep PMI that arrived at 49.8. The non manufacturing for Sep was at 53.4 vs pre 53.4. Then, we have just had the Caixin/Markit final PMI 45 minutes later into the session. This beat the flash reading of 47.0 and arrived at 47.2.
AUD/USD technically mixed, bearish below 55 DMA
We remain with the same technical picture. There is still a strong bearish consensus around the price of AUD/USD having recently failed on the 27th August and rallies are expected to fade below there.
The price is finding tough resistance at the 200 SMA at 0.7047 and the 20 DMA at 0.7055 may prove to be too much, as well protected territory with bears sell stops lined up. The 50 SMA on the hourly is offering near term support on dips within the minor recovery from 0.6936 recent low. Continued upside failures will bring back the focus to the 0.6905 psychological support and the 0.6774 2004 low.
(Market News Provided by FXstreet)