The AUDUSD pair, currently at 0.64548, continues to rise for the second consecutive day and reaches its highest level in almost two weeks.

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• AUD/USD scales higher for the second straight day and climbs to a nearly two-week top.

The pair currently trades last at 0.64548.

The previous day high was 0.646 while the previous day low was 0.6416. The daily 38.2% Fib levels comes at 0.6443, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6433, expected to provide support.

The AUD/USD pair attracts some buying for the second successive day on Friday and climbs to a nearly two-week high during the Asian session. Spot prices climb further beyond mid-0.6400s following the release of the mostly upbeat Chinese macro data, though the fundamental backdrop warrants some caution before positioning for any further appreciating move.

The National Bureau of Statistics (NBS) reported China’s August Retail Sales grew by 4.6% over the twelve months through August as compared to 3.0% expected and 2.5% previous. Adding to this, the country’s Industrial Production also surpassed estimates and increased by a 4.5% YoY rate in August as compared to July’s 3.7% rise. This comes on top of more stimulus measures from China and remains supportive of the upbeat market mood, which is seen undermining the safe-haven US Dollar (USD) and lending some support to the risk-sensitive Australian Dollar (AUD).

In fact, The People’s Bank of China (PBoC) lowered its Reserve Requirement Ratio for much of the banking system by 25 bps – its second such move this year. This is expected to release more liquidity and potentially shore up growth in the world’s second-largest economy. Any meaningful USD corrective decline from over a six-month high touched on Thursday, however, seems limited in the wake of growing acceptance that the Federal Reserve (Fed) will stick to its hawkish stance. This, in turn, might hold back bulls from placing aggressive bets around the AUD/USD pair.

Market participants seem convinced that the US central bank will keep interest rates higher for longer and have been pricing in one more 25 bps lift-off by the end of this year. The bets were lifted by Thursday’s resilient US macro data, which, along with still-sticky inflation, should allow the Fed to keep rates higher for longer. The narrative remains supportive of elevated US Treasury bond yields and favours the USD bulls. This further makes it prudent to wait for strong follow-through buying before confirming that the AUD/USD pair has formed a near-term bottom.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6447 at the time of writing. Pair opened at 0.644 and is trading with a change of 0.11 % .

The pair is trading above its 20 Daily moving average @ 0.6428, below its 50 Daily moving average @ 0.6562 , below its 100 Daily moving average @ 0.6619 and below its 200 Daily moving average @ 0.6707

The previous day high was 0.646 while the previous day low was 0.6416. The daily 38.2% Fib levels comes at 0.6443, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6433, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6417, 0.6395, 0.6373
• Pivot resistance is noted at 0.6462, 0.6483, 0.6506

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