FxWirePro: AUD/USD approaches 200-DMA resistance, decisive break above to propel the pair higher

Chart - Courtesy Trading View 

AUD/USD was trading 0.46% higher on the day at 0.6829 at around 04:40 GMT, resuming upside after a brief pause on Monday.

Upbeat China Caixin Manufacturing PMI and general US dollar weakness amid recovery in risk sentiment supports the pair higher.

China Caixin Manufacturing PMI for December landed at 49.0, higher than the consensus of 48.8 despite a spike in Covid-19 infections.

The US Dollar Index (DXY) depressed below 5-DMA, extends sideways around 103.48 amid a rebound in the risk-appetite theme.

Technical indicators are biased higher. GMMA indicator shows major and minor trend are bullish. 

Momentum is bullish and volatility is high MACD confirms bullish crossover on signal line. 

Looking forward, Wednesday’s FOMC Minutes, as well as Friday’s US December month employment numbers, will be crucial for the pair's direction.

Investors will keep an eye on the policy outlook for CY2023 and current economic prospects for cues on further price action.

Major Support Levels: 0.6789 (5-DMA), 0.6743 (21-EMA)

Major Resistance Levels: 0.6854 (200-DMA), 0.6865 (Upper BB)

Summary: The pair is approaching 200-DMA which is major resistance at 0.6854, decisive break above required for upside continuation.