AUD/USD chart on Trading View used for analysis
- AUD/USD trades 0.13% lower on the day at 0.7189 at the time of writing.
- Aussie dented as China PMI misses expectations, sinks to 13-month low in October.
- Data released earlier today showed China's Caixin services PMI drops sharply to 50.8 in October, 28-month lows.
- Further, the Caixin Services PMI fell to a 13-month low and the Composite Output Index declined to 50.5 from September's 52.1.
- Antipodeans to remain under pressure as trade war fallout continues to drag on China's economy.
- Major trend for the pair remains bearish. Price action was rejected at channel top at 0.7250.
- That said, we see bullish divergence on RSI and stochs which keeps scope for upside.
- The pair is holding immediate support at 55-EMA at 0.7183. Break below will see test of 5-DMA.
- Focus now on RBA's policy decision tomorrow and quarterly Statement of Monetary Policy (SoMP) due to be published this Friday for direction.
Support levels - 0.7183 (55-EMA), 0.7154 (5-DMA)
Resistance levels - 0.72, 0.7284 (110-EMA)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
