- AUD/USD pops and drops even as China’s private manufacturing gauge follows the official upbeat reading.
- 23.6% Fibonacci retracement, 21-day SMA limit immediate upside.
With China’s private manufacturing gauge following official data in printing welcome readings, AUD/USD surged to day’s high of 0.6770 during early Monday. However, the pair couldn’t hold its strength and declines back to 0.6763 by the press time.
China’s September month Caixin Manufacturing gauge, the purchasing managers’ index (PMI), surged past-50.2 forecast to 51.4. Earlier, the NBS Manufacturing PMI also crossed expectations of 49.7 with 49.8 figure.
The pair still remains below 23.6% Fibonacci retracement of July-August downside, at 0.6772, a break of which could escalate the recovery towards 21-day simple moving average (SMA) level around 0.6810.
However, 38.2% Fibonacci retracement, near 0.6830, and a descending trend-lien since July 19, at 0.6840, could restrict pair’s additional upside.
Meanwhile, 0.6740-35 area and 0.6700 could entertain short-term sellers during the fresh declines ahead of highlighting August low near 0.6675.
AUD/USD daily chart
Trend: bearish