AUD/USD chart on Trading View used for analysis
- AUD/USD holds-on to previous sessions gains, trades 0.28% higher at 0.7266 at 0450 GMT.
- Upbeat Chinese PMI data and a dovish Fed support gains in the pair.
- Data released earlier today showed official Chian manufacturing PMI for January printed at 49.5, beating the estimate 49.3 and up from the previous month's print of 49.4.
- Meanwhile, the official non-manufacturing PMI rose to 54.7 in January, also beating the estimate of 53.9.
- While the markets largely expected the Fed to leave rates on hold, the exceedingly dovish undertone forced a sharp correction in the US dollar.
- The pair's technical indicators have turned bullish on the daily charts. Price action has broken above 110-EMA and daily cloud.
- Next major bull target lies at 200-DMA at 0.7297. Bullish invalidation on retrace below 110-EMA.
Support levels - 0.7212 (110-EMA), 0.7170 (converged 20-DMA and 55-EMA), 0.71
Resistance levels - 0.7297 (200-DMA), 0.7393 (Dec 2018 high), 0.7440 (50% Fib)
Recommendation: Stay long on dips, target 200-DMA. Break above will target 0.74 levels
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
