FXStreet (Guatemala) – AUD/USD is currently on the bid having come from a low of 0.6998 and has penetrated through the 20 SMA on the hourly chart at 0.7018, rising with continued demand for the Aussie.
The price is targeting the 200 SMA at 0.7043 after AUD/USD spiked before the release of the official China Sep PMI while the consensus was for yet another print below the 50 mark at 49.7 and unchanged from August. This arrived at 49.8. The non manufacturing for Sep was at 53.4 vs pre 53.4.
AUD/USD awaits next China data input
We now await the Caixin/Markit final PMI. This will come out at 11.45am Syd and 9.45am local and there is not expected to be a change from the flash reading of 47.0. AUD/USD should garner demand on any further any upside surprises.
AUD/USD technically mixed, bearish below 55 DMA
Technically, however, there is a strong bearish bias while trading below the 55 day ma at 0.7209 where it recently failed on the 27th August and rallies are expected to fade below there.
While targeting the upside currently, the 200 SMA lies at 0.7047 and 20 DMA at 0.7055 is compelling to the bulls. 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)