“¢ Upbeat Chinese Caixin services PMI extends some support on Monday.
“¢ A modest USD uptick/US-China trade tensions capping further gains.
The AUD/USD pair struggled to register any meaningful recovery and remained within striking distance of over 2-1/2 year lows set on Friday.
The pair, so far, seems to have snapped four consecutive days of losing streak and was being supported by today’s better-than-expected release of Chinese Caixin services PMI, which tends to underpin demand for the China-proxy Australian Dollar.
However, a combination of negative forces kept a lid on any strong follow-through, with the pair struggling to make it through 50-hour SMA. A positive assessment of the latest US monthly employment details helped the US Dollar to gain some positive traction, which coupled with worries over escalating US-China trade tensions further contributed towards capping any meaningful up-move.
With the US markets closed in observance of Columbus Day, the USD price dynamics might continue to act as an exclusive driver of the pair’s momentum through Monday’s trading session.
Technical levels to watch
A fresh wave of selling pressure has the potential to continue dragging the pair further towards testing the key 0.70 psychological mark, with some intermediate support near the 0.7030-25 region.
On the flip side, immediate resistance is pegged near the 0.7080-85 region and is closely followed by the 0.7100 handle, above which the pair could head towards testing 0.7130-40 supply zone.
Share
