FxWirePro: AUD/USD struggles to extend gap-up open, positive Chinese factory gauges and signs of progress in Sino-U.S. trade talks support Aussie

AUD/USD chart - Trading View 

• AUD/USD opened with a bullish gap open after positive Chinese data buoyed sentiment.
   
• The pair is currently trading at 0.7117, slightly below session highs at 0.7127.
   
• China’s official PMI, released on Sunday, rebounded to 50.5 from 49.2 in the prior month, the biggest increase since 2012. 
   
• A separate private PMI gauge published by Caixin Media and IHS Markit on Monday rose to 50.8 from 49.9 in February.
   
• Hopes that the United States and China would reach an agreement on trade as early as this month also supporting antipodeans.
   
• The pair is struggling to extend bullish momentum, but holds support at 5-DMA at 0.7101.
   
• Next major resistance lies at 100-DMA at 0.7153. Break above targets trendline resistance at 0.7180.
   
• Immediate support lies at 5-DMA at 0.7101. Break below eyes 20-DMA at 0.7084.

Support levels - 0.7101 (5-DMA), 0.7084 (20-DMA), 0.7041 (Mar 14 low)

Resistance levels - 0.7153 (nearly converged 100-DMA and 110-EMA), 0.7180 (trendline), 0.72

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