Chart - Courtesy Trading View
Spot Analysis:
AUD/USD was trading 0.23% lower on the day at 0.6818 at around 07:40 GMT
Previous Week's High/ Low: 0.6821/ 0.6682
Previous Session's High/ Low: 0.6886/ 0.6716
Fundamental Overview:
Aussie rallied after China eased its restrictions on imports of Australian coal.
Further, hopes for China's emergence from the COVID-19 pandemic keep sentiment buoyed.
On the data front, consecutive drop in US ISM Manufacturing PMI data on Wednesday weighed on the dollar.
US Manufacturing PMI dropped to 48.4 vs. the expectations of 48.5 and the former release of 49.0, recorded as the lowest reading since May 2000.
Focus now on Friday’s US Nonfarm Payrolls (NFP) data, expected to add fresh 200K payrolls in December against 263K reported earlier. The Unemployment Rate is seen unchanged at 3.7%.
Later in the day investors will look after Automatic Data Processing (ADP) Employment Change data, which is seen higher at 150K against the prior figure of 127K.
Upbeat US payroll data would stoke expectations for the continuation of hawkish policy by the Fed.
Technical Analysis:
- AUD/USD trades with a bullish bias
- Momentum is bullish, volatility is high
- GMMA indicator shows major and minor trend are bullish
- Price action is above cloud and Chikou span is biased higher
Major Support and Resistance Levels:
Support - 0.6800 (5-DMA), Resistance - 0.6847 (200-DMA)
Summary: AUD/USD pivotal at 200-DMA. Watch out for decisive break above for upside continuation.
