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Thomson Reuters
Oct 01 - 03:48 PM
AUD/USD - COMMENT-Resilient AUD/USD Withstands Worrying China Data
First appeared on eFXplus on Oct 01 - 01:40 PM

AUD/USD remains resilient in the face of bearish risks, including the downside surprise in China's September PMI, which is nearing recessionary levels, and sharply wider Australia-U.S.
government bond spreads which have failed to drive AUD/USD below last week's low or critical 0.7200 support.
AUD/USD is managing to hold above the 21-DMA for the second session in as many days.
Technicals suggest AUD/USD is trying to form a bottom.
A doji candle formed for September after a brief trip below and bounce back above the 76.4 Fib of the 2016-18 rally, which could suggest the 2018's slide is at an end.
The diverging monthly RSI also suggests bears' grip is loosening.
Daily charts show potential for an inverse head and shoulders bottom.
Should AUD/USD hold above 0.7200 and break the head and shoulders neckline, bull sentiment will increase.
The neckline sits above the 2018 down trend line and near the 55-DMA and daily cloud base.
A completion of the pattern suggests AUD/USD has scope to trade to the 0.7550 area.

chart: Click here

Source:
Thomson Reuters IFR Markets

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