• AUD/USD edged higher on Monday, but gains were constrained due to a lack of details regarding China's stimulus plans.
• Australian dollar is often traded as liquid proxy for the Chinese yuan as Beijing is the top trading partner of Australia.
• Traders are looking ahead to Australian jobs data on Thursday, where economists are expecting a rise of 25,000 for September and no change in the jobless rate at 4.2%.
• Technical signals show the pair could lose more ground as RSI is up at 45, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 0.6770 (38.2%fib), any close above will push the pair towards 0.6816(Oct 7th high).
• Support is seen at 0.6718(23.6%fib) and break below could take the pair towards 0.6691 (lower BB).
Recommendation: Be on sidelines
