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Fundamental analysis

AUDUSD Sits Comfortably Above Mid-0.7200

GKFX | Jan. 31, 2019
AUDUSD Sits Comfortably Above Mid-0.7200

The AUDUSD pair held on to its positive tone through the early European session and is currently placed at near two-month tops, around 0.7265-70 region.

January 31, GKFX – The pair continued gaining positive traction for the second straight session and was further supported by slightly better Chinese PMI prints.

The official Chinese manufacturing PMI, though remained in contraction territory bettered estimates and came in at 49.5 for January, while non-manufacturing PMI jumped to 54.7, also beating estimates of 53.9. 

Dovish Fed message continues to weigh on the USD

The data provided a minor lift to the China-proxy Australian Dollar and assisted the pair to build on the previous session's strong up-move led by a dovish message by the FOMC, clearly hinting that it is nearing the end of its recent policy tightening cycle and that its efforts to reduce the $4 trillion asset portfolio could end sooner than expected.

Despite a combination of supporting factors, the pair struggled for any strong follow-through as investors remained cautious and await the outcome of the highly anticipated US-China trade talks that began on Wednesday, where officials of the world's two largest economies are trying to reach a deal before the March 1st deadline. 

Apart from the US-China trade developments, the keenly watched US monthly jobs report (NFP), scheduled for release on Friday, will play an important role in determining the pair's next leg of a directional move. In the meantime, today's second-tier US economic data - initial weekly jobless claims and Chicago PMI, will still be looked upon for some short-term trading opportunities. 

AUDUSD technical analysis

    Today Last Price: 0.7261

    Today Daily change %: 0.17%

    Today Daily Open: 0.7249

Trends:

    Daily SMA20: 0.7159

    Daily SMA50: 0.7168

    Daily SMA100: 0.7172

    Daily SMA200: 0.7295

Levels:

    Previous Daily High: 0.7273

    Previous Daily Low: 0.7143

    Previous Weekly High: 0.7185

    Previous Weekly Low: 0.7076

    Previous Monthly High: 0.7394

    Previous Monthly Low: 0.7014

    Daily Fibonacci 38.2%: 0.7223

    Daily Fibonacci 61.8%: 0.7193

    Daily Pivot Point S1: 0.717

    Daily Pivot Point S2: 0.7092

    Daily Pivot Point S3: 0.704

    Daily Pivot Point R1: 0.73

    Daily Pivot Point R2: 0.7352

    Daily Pivot Point R3: 0.7431

Disclaimer

This article was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.