FxWirePro: AUD/USD extends gains above 5-DMA, surge in China’s industrial profits buoy Aussie

AUD/USD chart - Trading View 

• AUD/USD extends gains for the 3rd straight session, breaks above 5-DMA.
   
• Aussie buoyed as China’s industrial profits surged after the previous two months of deterioration.
   
• China's industrial profits in March rise 13.9 pct year-on-year to 589.52 billion yuan ($87.62 billion), data from the National Bureau of Statistics showed. 
   
• Profits recovered from a 14 percent fall in the first two months, easing concerns about the slowing momentum in China’s economy.
   
• AUD/USD recovers from multi-month lows with a 'Morning Star' formation raising scope for further upside.
   
• Price action has edged above 5-DMA and we see scope for upside till 50-DMA at 0.71.
   
• Major trend is definitely bearish. Price action is currently capped at 1H 110-EMA at 0.7056. Break above to see further gains.
   
• Failure to break above 1H 110-EMA could see resumption of weakness. 
   
• Today’s US personal spending details will be in focus after the GDP figures highlighted sluggish consumer spending.

Support levels - 0.7044 (5-DMA), 0.70, 0.6988 (Apr 25 low)

Resistance levels - 0.7056 (1H 110-EMA), 0.7105 (50-DMA), 0.7180 (200-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.