FxWirePro: AUD/USD tests 200-week MA resistance at 0.7139, break above to fuel further gains
Chart - Courtesy Trading View
AUD/USD was trading 0.48% higher on the day at 0.7131 at around 06:55 GMT
Previous Week's High/ Low: 0.7073/ 0.6872
Previous Session's High/ Low: 0.7109/ 0.7057
Profits at China's industrial firms fell at their fastest pace in two years in April as COVID curbs squeeze firms.
According to data published by the National Bureau of Statistics (NBS) on Friday, China's industrial profits shrank 8.5% from a year earlier, swinging from a 12.2% gain in March.
Details of the report showed industrial firms' profits grew 3.5% year-on-year to 2.66 trillion yuan ($395.01 billion) for the January-April period, slowing from an 8.5% increase in the first three months.
Australia’s seasonally adjusted Retail Sales showed no surprises, came in line with expectations at 0.9% month-on-month, versus 1.6% prior.
On the other side, US preliminary Q1 2022 Annualized GDP eased to -1.5%, below -1.4% prior and -1.3% forecasts, whereas the Pending Home Sales slumped in April, to -3.9% versus -2.0% forecast.
US Dollar Index weakness supports the pair higher ahead of US PCE data due later today. The annualized figure is expected to remain unchanged at 6.65 while the monthly figure could slip to 0.8%.
On a monthly basis, US Core Personal Consumption Expenditure (PCE) Price Index for April, expected at 4.9% YoY versus 5.2% prior.
- AUD/USD is extending upside above 21-EMA, has ended consolidation phase
- Momentum studies are bullish, Stochs and RSI are biased higher
- MACD and ADX support upside in the pair, Chikou span is biased higher
- GMMA indicator shows near-term trend has turned bullish
Major Support and Resistance Levels:
Support - 0.7085, Resistance - 0.7139 (200-week MA)
Summary: AUD/USD finds major resistance at 200-week MA, watch out for decisive break above for upside continuation.