FxWirePro: AUD/USD pares losses, risk-on rally in Chinese stock markets supports Aussie

AUD/USD chart on Trading View used for analysis

• AUD/USD is currently trading at 0.7109, up from session lows at 0.7088.
   
• A risk-on rally in Chinese stock markets is currently supporting the Aussie.
   
• Major trend remains bearish. The pair finds stiff resistance at 21-EMA at 0.7137. Any further upside only on decisive break above.
   
• Continued geopolitical tensions constrain overall market sentiment and keeping the major in downward pressure.
   
• Slowdown in Chinese consumption growth represents a significant headwind for the already-wobbly Australian growth cycle.
   
• Price action currently hovers around 5-DMA at 0.7115, decisive close below will see resumption of weakness.

Support levels - 0.7115 (5-DMA), 0.7085 (Sept 11 low), 0.7040 (Oct 8 low)

Resistance levels - 0.7137 (21-EMA), 0.72, 0.7212 (55-EMA) 

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