FxWirePro: AUD/USD continues downside on dismal Australia GDP, markets brush aside big beat on Chinese Caixin services PMI

AUD/USD chart on Trading View used for analysis

• AUD/USD has resumed downside after a brief pause, bulls dented by dismal Australia Q3 GDP data.
   
• Australia September quarter GDP arrived well below estimates, supporting the view that RBA will keep rates unchanged through 2019.
   
• The pair edged slightly higher as a big beat on the Chinese Caixin November services PMI offered some reprieve to the Aussie bulls.
   
• China Caixin/Markit Nov Services PMI hit a 5-month high of 53.8 versus Oct’s 50.8 and beating estimates at 50.8, led by the rise in new orders.
   
• However, markets seems to have brushed aside upbeat China data and the major has resumed declie.
   
• We see strong support at 1H 200 SMA at 0.7289. Violation there could see further weakness.
   
• On the flipside, the pair has slipped below 5-DMA and retrace above could see gains upto 200-DMA.

Support levels - 0.7289 (1H 200-SMA), 0.7279 (110-EMA), 0.7266 (20-DMA)

Resistance levels - 0.7322 (5-DMA), 0.7363 (Upper BB), 0.7412 (200-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.