AUDUSD: Aussie Trades Stronger Despite Weaker Chinese Data

31 / 07 / 2018
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The Australian dollar moved higher during the London session on Tuesday and the AUDUSD pair was changing hands around 0.7420, some 0,25% stronger on the day.

The Asian session brought Chinese PMIs, which came below market estimates. The non-manufacturing sector weakened from 55.0 to 54.0, while analysts had expected the index to stay at 55.0. The services sector also ticked lower from 51.5 to 51.2.

A short time after, Australian building permits rose notably month-on-month from -2.5% to 6.4%, which supported the Australian dollar.

Moreover, commodities such as gold, silver, oil and copper were all trading lower but the Australian dollar failed to react and remained elevated.

The trend on the AUDUSD pair has been choppy for a couple of weeks and the Aussie is stuck in a narrow range. The key resistance is located at previous highs near 0.7480 and if broken, bulls could be stronger, with the next target at the 100 day moving average near 0.7550.

On the downside, bids are located around 0.7370 and afterward at the current cycle lows near 0.7330.

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