AUD/USD dumped to fresh multi-week lows at 0.7107, no respite for the Aussie here, further weakness on charts.
- Caixin's China Services PMI fell to 50.2 in December from 51.2 a month earlier, suggesting China's tertiary industry grew at the weakest pace since July 2014.
- PBoC fix was at 6.5314 on Wednesday, the highest since April 2011, mainland Chinese stocks gained after the fix, but rest of Asia still in the red.
- AUD/USD is testing major support at 0.71 levels, break below could see 0.7068 and then 0.7016 levels.
- Price action has dipped below the daily cloud, momnetum indicators are all biased lower.
- Immediate resistance is seen at 0.72, while support on the downside is at 0.71 (rising trendline) and further below at 0.7096 (Dec 16 lows).
Recommendation: Good to sell rallies around 0.7110, SL: 0.7170, TP: 0.7068/0.7020/0.70
