FxWirePro: AUD/USD ignores dismal China PMI data, edges higher on upbeat Australia Building Approvals

• AUD/USD trades 0.21% higher on the day, at 0.7422 at the time of writing.
   
• Aussie largely ignores dismal China PMI data and bounces higher on upbeat Australia Building Approvals.
   
• China non-manufacturing PMI came in at 54.00, a touch softer than June's print of 55.00.
   
• Australia dwelling approvals grew by 6.4 percent over the month, to be up 1.6 percent for the year, beating expectations at a modest 1 percent m/m gain.
   
• The pair has broken above strong resistance at 0.7411 (converged 5-DMA and 21-EMA).
   
• Bullish divergence on RSI and Stochs keeps scope for further upside. 
   
• Next major resistance lies at 50-DMA at 0.7460 ahead of 23.6% Fib at 0.7505.
   
• On the flipside, retrace and close below 0.7411 could see weakness till 0.7315 (major trendline).
   
• Fed monetary policy meeting is a major event to look out for. Hawkish outcome could aggravate weakness.

Support levels - 0.7411 (converged 5-DMA and 21-EMA), 0.74, 0.7315 (trendline)

Resistance levels - 0.7460 (50-DMA), 0.7505 (23.6% Fib), 0.7549 (100-DMA)

Recommendation: Stay long on close above 21-EMA, target 0.7460/ 0.75/ 0.7550

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 16.7726 (Neutral), while Hourly USD Spot Index was at -52.1907 (Neutral) at 0445 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.