AUD/USD chart on Trading View used for analysis
- AUD/USD extends upside, trades 0.45% higher at 0.7238 at the time of writing.
- The pair is extending gains of the previous session after upbeat PPI data.
- Data released earlier today showed Australia September retail report was on the soft side.
- Monthly retail sales rose 0.2%, slightly lower than the consensus forecast of 0.3%.
- On the other side, Australia's quarterly Producer Price Index clocked in at 0.8%, beating the 0.2% forecast and over the previous quarter's 0.3%.
- Aussie shrugged off poor trade data to cling on to gains. Scope for further upside.
- Technical studies are biased higher. Breakout above daily cloud will see next major resistance at 23.6% Fib at 0.7284.
- On the flipside, retrace below 55-EMA to see weakness till 5-DMA at 0.7136.
Support levels - 0.7184 (55-EMA), 0.7136 (5-DMA), 0.71 (20-DMA)
Resistance levels - 0.7250 (channel top), 0.7287 (110-EMA), 0.73
Recommendation: Stay long on channel breakout, target 0.7285/ 0.73/ 0.7380
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
