AUDUSD retreat today after the strong December rally that brought the Aussie up to five-month highs. The rally came amid USD weakness across the board and robust data coming out of China. Today we had a disappointment from China as the Manufacturing PMI came in at 51.5 below expectations of 51.7 in December.
The Australia RBA Commodity Index SDR came in at -2.1% beating expectations of -10.9% in December.
AUDUSD hit five-month highs on the last trading session of 2019 but today started lower breaching below the 0.70 mark. The momentum is still positive for the pair despite today’s correction. On the downside, first support stands at 0.6986 the daily low. More bids might energe at 0.6940 the low from December 27th. If bears break below then the next support zone provided by the 200-day moving average at 0.6898.
On the upside, initial resistance for AUDUSD will be met at 0.7019 the daily top. Next supply zone stands at 0.7031 the high from December 31st trading session. The high from July 19th at 0.7081 might be the next resistance level.