Key Points
- The Aussie dollar after trading as low as 0.7493 against the US Dollar found support and traded higher.
- There is an ascending channel pattern formed on the hourly chart of the AUDUSD pair, which is playing a major role for the recent upside.
- In China, the Caixin China Services PMI report was released by Markit Economics.
- The outcome was positive, as there was a rise from the last reading of 51.7 to 52.1 in August 2016.
AUDUSD Technical Analysis
The Aussie dollar declined this past week and traded as low as 0.7493 against the US Dollar. However, the AUD buyers appeared and pushed the AUDUSD pair back higher. There is currently an ascending channel pattern formed on the hourly chart, which is helping buyers to remain in action.
The pair may dip a few pips from the current levels, but may find support near the channel support trend line.
On the upside, a break of the channel upper trend line may push the pair towards 0.7650.
Caixin China Services PMI
Today during the Asian session, the Caixin China Services PMI™, which is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies was released by Markit Economics.
The forecast was lined up for a rise from the last reading of 51.7 to 51.9 in August 2016. However, the outcome was on the higher side, as there was a rise to 52.1. The report added that “A further increase in total business activity was supported by moderate expansions of activity and output across the services and manufacturing sectors in August. The Caixin China General Services Business Activity Index rose from 51.7 to 52.1 in August”.
Overall, the Aussie dollar was benefited after the release and may continue to move higher in the near term.
