AUDUSD At Seven-Month Highs On Strong Chinese Data

AUDUSD trades 0.33% higher at 0.6968 making fresh five-month amid general US dollar weakness. Positive headlines around a signing ceremony of the phase one trade deal between China and the U.S. supports the Aussie dollar.

In the economic data yesterday, the initial jobless claims came in at 222,000 for the week ended December 21st, which was in line with economists expectations. The employment in the U.S. seems to be in good shape, which supports the positive mood in equities.

The Chinese industrial profits increased by 5.4% in November after a sharp drop of 9.9% in October. In Australia the figures came in better than estimates. The unemployment rate dropped to 5.2% beating expectations of 5.3%. The robust jobs data might delay the next interest rate cut by the Reserve Bank of Australia.

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AUDUSD Next Resistance at 0.7000

AUDUSD makes today fresh five-month highs as the pair managed to register gains for the sixth trading session out of the last seven sessions. The momentum is positive for the pair after it breached above the 200-day moving average.

The first resistance for the pair will be met at 0.6976 the daily top. A break above will attract more bids and might target the next resistance level at 0.7007 the high from July 27th. Traders with long positions can sit comfortably as long as AUDUSD trades above the 0.69 mark.

On the flipside, first support for the pair stands at 0.6940 today’s low. Next level to watch on the downside is the 200-day moving average at 0.6900. A credible break below that level might cancel the bullish momentum. Next support level stands at 0.6849 the 50-day moving average.

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