FXStreet (Mumbai) – The Aussie ran into fresh bids near 5-DMA at 0.7220 and jumped higher thereon, as markets gear up for a RBA on-hold stance ahead of Chinese PMIs.
AUD/USD eyes 0.7286 levels
Currently, the AUD/USD pair trades 0.48% higher at 0.7260, easing-off fresh session highs reached at 0.7266 last minutes. The Australian dollar caught a fresh bid tone against its US counterpart this session, boosted by rising demand for higher-yielding currencies amid risk-on rally in the equities and higher gold prices.
Moreover, markets shrugged off the official mixed set of Chinese PMIs and now await the RBA decision, with markets wide anticipating the central bank to keep the policy steady, which further bolstered the AUD bulls.
China’s official manufacturing Purchasing Managers‘ Index (PMI) fell further into contraction, coming in at 49.6 in Nov against 49.8 reading seen in Oct. While the non-manufacturing PMI rose to 53.6 last month, as compared to 53.1 seen in Oct.
Meanwhile, markets remain cautious ahead of the Caixin Chinese manufacturing surveys and RBA decision due later this session.
AUD/USD Levels to watch
The pair has an immediate resistance at 0.7286 (Nov 25 High), above which gains could be extended to 0.7300 (round number) levels. On the flip side, support is seen at 0.7220 (20-DMA) from here it to 0.7169 (100-DMA).
(Market News Provided by FXstreet)