- AUD/USD has bounced of major trendline support at 0.7370 levels.
- The pair has broken above 20-DMA and bulls now target 200-DMA at 0.7531.
- Aussie buoyed following news of higher-than-expected corporate profits for Q1 2017.
- Business indicators shows Australia's company profits gain 6.0% while business inventories up 1.2% in Q1.
- Further, stronger-than-expected Caixin Chinese services PMI provided an additional boost to the China-proxy Australian Dollar.
- Focus now remains on a fresh batch of US macro news, including the ISM non-manufacturing PMI and factory orders data, for fresh impetus on the pair.
- Technical indicators are biased higher, we see weakness only on close below 20-DMA at 0.7429.
Support levels - 0.7429 (20-DMA), 0.74, 0.7385 (61.8% Fib of 0.71599 to 0.7749 rise)
Resistance levels - 0.7475 (May 31 high), 0.7490 (50-DMA), 0.75, 0.7531 (200-DMA)
Recommendation: Good to go long on dips around 0.7450/60, SL: 0.74, TP: 0.7490/ 0.7530/ 0.76
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 80.1556 (Slightly bullish), while Hourly USD Spot Index was at -113.152 (Bearish) at 0820 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
