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AUD/USD hits new 2016 highs above 0.73, ignores China PMI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The AUD/USD pair reversed losses and swung back into the positive territory above 0.73 handle, extending the rally into the third day.

    AUD/USD sees almost 30-pips recovery

    Currently, the AUD/USD pair gains 0.15% to trade at 0.7306, flirting with the highest levels since Dec reached at 0.7310. The Aussie found fresh bids near 0.7280 region and resumed its recent bullish run as the upbeat domestic trade data combined with risk-on rally in the Asian equities offered the much needed impetus to the major.

    The Australian trade deficit shrank to AUD 2.94b in Jan versus -3.22b expected, and against -3.52b seen in Dec. Exports rose AUD266m (1%) to AUD2.56b, while the imports fell AUD320m (1%) to AUD2.85b. While the Australian ASX 200 is seen rallying 0.70%.

    More so, the AUD/USD pair remained unperturbed by the weak Chinese Caixin services PMI report and clinged to gains at multi-month highs, finally extending beyond 0.73 barrier. The Caixin China General Services PMI Index printed a reading of 51.2, down from January’s six-month high of 52.4.

    In the day ahead, the major will continue to track the broader market sentiment ahead of the US economic releases, which may provide fresh cues on the USD.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7332/38 (Dec 31 High/ daily R1) above which gains could be extended to the next hurdle located at 0.7388/0.7400 (Dec 4 High/ round number). On the flip side, the immediate support located at 0.7254 (1h 20-SMA/ 200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7203/04 (10 & 5-DMA).
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