FxWirePro: AUD/USD down from high yesterday as upside momentum fades

•  AUD/USD slipped  on Friday after data showed China’s factory activity contracted again in October, pressuring the AUD

• China’s manufacturing activity contracted for the seventh consecutive month in October, according to official data released Friday.

•China’s official manufacturing PMI slipped to 49.0 in October from 49.8 in September, marking a six-month low, according to data from the National Bureau of Statistics.

• Shifts in China’s economy often ripple through to the Australian dollar (AUD) due to Australia’s strong trade dependence on China.

• Separate data showed, Australia Q3 PPI increased 1.0% q/q and 3.5% y/y, compared with prior readings of +0.7% and +3.4%, respectively..

• Market consensus suggests the RBA will maintain a cautious approach amid signs that consumer spending is cooling and the labor market is stabilizing.

•  Immediate resistance is located at 0.6612(38.2%fib), any close above will push the pair towards 0.6634(Higher BB)

•  Support is seen at 0.6545(50%fib) and break below could take the pair towards 0.6531(SMA 20).

 Recommendation: Good to sell  around 0.6560 with stop loss of 0.6600 and target price of 0.6500