- Aussie buoyed by upbeat retail sales data, AUD/USD extends gains above 0.77 handle.
- The Aussie Retail Sales printed at 0.6%, beating expectations at 0.3% and compared to the previous figure of 0.2% in January.
- That said, a miss in China's Services PMI which came in below expectation, printing at a 52.3 contraction versus the forecast 54.5 expansion is likely to keep gains limited.
- Technical indicators are turning bullish and bullish divergence on RSI and Stochs raises scope for upside.
- Price action has shown a breakout at 1H 200-SMA at 0.7694 and Stochs are on verge of rollover from oversold levels.
- 20-DMA at 0.7740 is strong resistance. Breakout above with confirmation on Stochs and RSI will take the pair higher.
- Focus now on US NFP data, with US employment and wage growth figures hitting the markets on Friday.
Support levels - 0.7637 (converged trendline & 78.6% Fib), 0.76, 0.7532 (Nov 21 low), 0.75
Resistance levels - 0.7674 (5-DMA), 0.77, 0.7743 (61.8% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 89.8944 (Bullish), while Hourly USD Spot Index was at -32.9791 (Neutral) at 0330 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
