The AUD/USD pair has gained tremendous impetus with the announcement of better-than-expected Caixin Manufacturing PMI data.
Despite a jump in Covid-19 infections following the Chinese administration’s hasty reopening of the economy, the economic data came in at 49.0, up from 48.8 previously.
On a four-hour scale, the Aussie asset is moving towards horizontal resistance, which is a three-month high made from the high of December 13 at 0.6893.
After a minor fall, the Australian Dollar has recovered to around the 20-period Exponential Moving Average (EMA) of 0.6792.
Furthermore, the 50-period EMA at 0.6765 is rising, indicating that the bullish bias remains strong.
Meanwhile, the Relative Strength Index (RSI) (14) has moved into the positive zone of 40.00-60.00, indicating that the market is bullish.
Bullish momentum has been established. A break over the December 5 high at 0.6850 will push the Aussie asset to a three-month high around 0.6900.
A break of the latter will signal further higher towards the August 30 high of 0.6956.
A move below the December 29 low of 0.6710, on the other hand, will drive the major down to the December 22 bottom of 0.6650, followed by the November 21 low of 0.6585.
