AUDUSD attempts again through key 55SMA, boosted by upbeat Chinese IP data
The Australian dollar holds firm tone on Wednesday, supported by upbeat Chinese IP data (Feb IP 7.2% vs 6.3% f/c and Jan 6.2%).
Fresh strength probes again above cracked Fibo 61.8% of 0.7988/0.7712 descend (0.7882) and pressures 55SMA (0.7888) and Tuesday’s high at 0.7897, where bulls were rejected.
Daily techs hold bullish momentum, which is supportive for further advance, however, close above Fibo barrier and 55SMA is needed for bullish signal to extend recovery rally from 0.7712 and expose key barrier at 0.7973 (daily cloud top).
Weaker dollar on fresh political turmoil in the US keeps the Aussie supported, but fears about US tariff plan could obstruct bulls.
Caution on repeated failure to break above 55SMA, while stronger bearish signal could be expected on break below 30SMA (0.7850) and 20SMA (0.7835).
Res: 0.7897; 0.7923; 0.7973; 0.7988
Sup: 0.7882; 0.7850; 0.7835; 0.7817