The Australian dollar rebounded as a downbeat reading on Chinese manufacturing and talk of rate cuts in the United States stoked speculation of an imminent RBA policy easing. China's official Purchasing Managers' Index (…
The Australian dollar rebounded as a downbeat reading on Chinese manufacturing and talk of rate cuts in the United States stoked speculation of an imminent RBA policy easing.
China's official Purchasing Managers' Index (PMI) fell to 35.7 from 50.0 in January.
The Aussie was trading 0.8 percent up at 0.6554, having hit a low of 0.6433 on Friday, its lowest since March 2009.
Technical indicators are bullish on hourly charts: RSI strong at 60, Stochs are at overbought levels and MACD supports upside.
Immediate resistance is located at 0.6578 (7-EMA), a break above could take it near 0.6590 (50% retracement of 0.6750 and 0.6433)
On the downside, support is seen at 0.6448, a break below could drag it till 0.6424.
Recommendation: Good to buy on dips around 0.6468, with stop loss of 0.6448 and target price of 0.6578.
