FxWirePro: AUD/USD recovers from a bearish gap open, Aussie remains bid amid vaccine optimism and upbeat data

AUD/USD chart - Trading View 

AUD/USD has covered up the slight bearish gap open on Monday's trade aa the Australian dollar found bids amid rising vaccine optimism and upbeat data.

The major was trading 0.13% higher on the day at 0.7311 at around 04:35 GMT, edging higher from session lows at 0.7299.

The preliminary readings of the Common Wealth Bank’s (CBA) Manufacturing PMI for November stood at 56.1, beating market consensus at 54.2. 

Services PMI also rose past-53.8 expected to 54.9. As a result, Composite PMI crossed 53.5 prior to 54.7 mark. 

Aussie bulls also cheer the re-opening of borders in Australia's two most populous states. Further, news that the Treasurer Josh Frydenberg signaled a tax-cut extension for the domestic businesses also supported risk-on.

Technically, AUD/USD trades with a bullish bias. Overbought oscillators can cause some pullbacks.

Price action is set to extend gains above 200W MA and next major bull target lies at 78.6% Fib at 0.7573. 

5-DMA is immediate support at 0.7299. Retrace below 200W MA and daily cloud will see significant weakness.