AUD/USD could extend its advance on a clear break above a Fibonacci resistance level

The following post was written and/or published in collaboration between Benzinga’s in-house sponsored content team and a Benzinga financial partner. AUD/USD Current price: 0.7229

  • Chinese data was mixed with the manufacturing PMI contracting in September.

  • Rising gold prices helped the Aussie post gains against its American rival.

  • AUD/USD could continue its advance on a clear break above a Fibonacci resistance level.

The AUD/USD pair regained most of the ground lost on Wednesday to end the day around 0.7230. Despite a sharp drop in US stocks and continued demand for the US currency, the pair managed to gain on the back of a rally gold Prices. The bright metal gained about $40 an ounce, overshadowing the greenback as the preferred safe haven. AUD/USD hit a high of 0.7256 and was down in the US in the afternoon, although holding onto most of its intraday gains.

Australia published better-than-expected August building permits, up 6.8%m/m. However, the focus was on China. The NBS September manufacturing PMI unexpectedly contracted to 49.6, while the non-manufacturing PMI came in at 53.2, beating expectations. Friday is a national holiday in China, meaning activity may be restricted during the upcoming Asian session. Australia will publish the September Commonwealth Bank PMI for manufacturing and August home loans.

AUD/USD short-term technical outlook

The AUD/USD pair met sellers around the 61.8% retracement of its last daily rise, still a critical resistance level around 0.7250. The daily chart suggests that the rise could be corrective as technical indicators barely bounced off near oversold levels and remained in negative territory. The 20 SMA maintains its strong bearish slope above the current levels, suggesting that selling interest is still strong.

In the near term and according to the 4-hour chart, the recovery also appears to be corrective. Technical indicators keep their bullish biases but within negative levels as the pair trades below a mild bearish 20-SMA. A clear break above 0.7250 would open the door for a steeper climb on the last trading day of the week.

Support levels: 0.7175 0.7130 0.7090

Resistance levels: 0.7250 0.7290 0.7330

Image source from Pixabay

The preceding post was written and/or published in collaboration between Benzinga’s in-house sponsored content team and a Benzinga financial partner. Although the piece is not editorial content and should not be construed as editorial content, the sponsored content team works to ensure that all information contained herein is true and accurate to the best of their knowledge. This content is for informational purposes only and is not intended as investment advice.

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