AUD/USD ripping higher on Aussie data; still below 0.8996 resistance

FXstreet.com (Barcelona) - The AUD/USD opened the week on an upbeat note after decent Chinese PMI data and bullish Australian building data teamed up to press the cross higher.

Strong Chinese and Aussie data bulling the AUD/USD higher early on Monday

Today, Australian data came out on the bullish side of the ledger as a whole even as certain data missed the mark. Performance of Manufacturing data were an improvement over last month and Building Permits absolutely crushed estimates and the previous month’s data. However, Securities Inflation data and Corporate Operating Profits data came out on the light side.

Perhaps the most important data for the AUD/USD thus far today came from China as its PMI data increased nicely on a month over month basis. The news was enough to force the AUD/USD to gap up strongly at the open.

Later this week, there will be plenty more data for AUD/USD traders to digest:
• Tuesday: RBA rate decision; Australian Retail Sales; US ISM Manufacturing PPI; US Construction Spending
• Wednesday: Australian Performance of Services Index; Australian GDP; US Trade Balance; US Fed Beige Book; Fed’s Dudley speaking
• Thursday: Australian Trade Balance; Fed’s Kocherlakota speaking; US ADP Employment Change; US Weekly Jobless Claims; US Non-Farm Productivity & Labor Costs; US Factory Orders; US ISM Non-Manufacturing PMI
• Friday: Australian Performance of Construction Index; US Monthly Employment Report
• Next weekend: Australian National Elections

Technical outlook for AUD/USD

The AUD/USD appears to be destined for a run down to 0.8805 and possibly even 0.8773 (both Fibonacci projections) before this macro wave lower is done. Shorter-term support comes in at 0.8891 – Wednesday and Friday’s low. Resistance – which technicians say should be sold into – comes in at 0.8996.

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