AUDUSD has settled into a period of consolidation after yesterday's activity in Asia
with a bid on the back of better than expected Chinese Caixan manufacturing
PMI's for September at 48.3 vs 47.5 consensus and 47.2 previous.
The
data offered the bulls some relief after a bearish gap that was filled
subsequent to commitments, but instigated on the back of weak manufacturing
PMI's for October that were a miss. We have the RBA interest rate decision and
statement tomorrow so there may not be much activity until this key
release.
Nonfarm Payrolls are also due as another major highlight and
anything reasonably bullish from this report will likely leave the door open for
a December rate hike from the Fed, underpinning demand for the
greenback.
AUD/USD levels
Technically, the price
needs to break the 28th October high of 0.7159 targeting R2 at 0.7199 through
the 200 SMA at 0.7179. On the downside, the 0.7050/80 area is a key level of
support that guards the downside to 0.7000.
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