• AUD/USD inched higher on Monday as risk sentiment improved largely driven by a widespread rebound in equities.
•. The Australian dollar, often considered a liquid proxy for the Chinese yuan due to Australia’s strong trade ties with China, also saw gains following the release of stronger-than-expected Chinese PMI data.
• The official purchasing managers' index (PMI) rose to 50.2 in February from 49.1 a month prior, the highest since November and beating analysts' forecasts.
• Looking ahead, investors shifted their focus to Australia's upcoming economic growth data for the fourth quarter, set to be released on Wednesday.
• At GMT 06:01, The Australian dollar was last trading up 0.21% to $0.6216.
• Immediate resistance is located at 0.6238(38.2%fib), any close above will push the pair towards 0.6293(50%fib).
• Support is seen at 0.6195 (Lower BB) and break below could take the pair towards 0.6175 (23.6%fib)
Recommendation: Good to sell around 0.6240, with stop loss of 0.6310, and target price of 0.6170
