AUD/USD: Break above 0.72 on full 'risk on' Asia

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Bali) - AUD/USD has broken to the upside above the stiff resistance of 0.72 round number following better-than-expected Chinese data and an ebullient mood in Asian equities, with the pair last traded near highs of the day at 0.7215.

    China data, Asian equities underpin AUD

    China October Services PMI came in at 52.0 vs 50.5 last, a 3-month high, while the composite stood at 49.9 vs 48.00 last. Meanwhile, the MS AXJ equity index is up by 1.9%, Nikkei 225 soaring by almost 2.5%, while the S&P500 futures trade +0.19%.

    AUD/USD key levels

    After the bullish resolution through 0.72, the next resistance for the pair is found at 0.7220 - highest on Tuesday with talk of stops above 0.7225 - followed by 0.7232/35 - Daily R1 - ahead of 0.7255 - ATR 14 limit up - and 07265 - sequence of highs Oct 26 -. On the downside, the 0.72 should now be the line in the sand drawn and meant to be protected by the ruling buying side, with a break lower set to expose 0.7175/80 - Daily Pivot - ahead of 0.7150 - lowest in last US session -.
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