Stronger Chinese industrial profits data also lends support. China’s industrial profits spiked 19.5% y/y in Aug versus +11% last.
AUD/USD edges higher from session lows at 0.7611, retakes 5-DMA at 0.7636 and is currently hovering around 0.7664 levels.
The pair has broken major resistance at 0.7655 and we see scope for further upside.
Technical indicators are biased north on the , is strong at 58 levels with scope for further upside.
Price action has edged above daily cloud, stochs are biased north.
Major support levels - 0.7637 (5-DMA), 0.7631 (cloud top), 0.76, 0.7576 (20-DMA)
Major resistance levels - 0.7675 (Sept 22 high), 0.77, 0.7760 (Aug 11 high)
Good to go long on dips, SL: 0.76, TP: 0.7675/ 0.77/ 0.7760
Some profit booking after pair hits 3-week highs at 0.7710.
Book partial profits. Strong trendline support at 0.7660.
Weakness only on break below.