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Flat Start, China Data Eyed

AUD

A pretty sideways start for AUD/USD after Friday saw a recovery from session lows as the broader DXY pulled back from YtD highs. The rate last prints at flat levels, just above $0.7330. Broader Australian headline flow has been limited since Friday's Sydney close, with most of Monday's focus set to fall on the latest monthly round of Chinese economic activity data. The key technical lines in the sand are relatively wide vs. current spot levels. Initial support comes in at Friday's low ($0.7277). Any move through there would expose a Fibonacci retracement ($0.7261). A firm support lies just below there, in the form of the base of a bull channel drawn from the Aug 20 low. Still, the recent move lower is considered corrective. Resistance to watch is at the Nov 9 high ($0.7432). A break there would ease bearish pressure.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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