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AUD/USD making lower highs below key 0.88 handle

FXStreet (Barcelona) - AUD/USD is trading at 0.8773, down -0.05% on the day, having posted a daily high at 0.8809 and low at 0.8749.

Shunned from the 0.88 handle on bullish attempts, the pair is back on it's knees having been crucified all the way to the mid point of the 0.87 handle by the bears. On these attempts higher, the pair is making lower highs each time as the greenback just keeps coming in strong. However, 0.8650 remains the key support zone and until this eight-month low is breached, we are still caught in a neutral to bearish range. Overnight, there was support for the Aussie from the HSBC Chinese PMI Manufacturing and that was coupled with previous upbeat results for the Chinese economy earlier in the week in the form of Industrial Production and GDP.

For the Aussie, this is sure to offer some background support and while the RBA will likely remain with current stance on policy into November, should China continue on proving resilient into next year, this could transpire into bullish rhetoric from the RBA in respect of the wages outlook in the Australian economy and be further supportive to the Australian dollar in the medium term. However, for now focus and attention will be with the FOMC next week which will be the main driver for the pair in the absence of events from Australia.

AUD/USD noteworthy levels

Spot is presently trading at 0.8774, and next resistance can be seen at 0.8776 (Hourly 20 EMA), 0.8780 (Daily Open), 0.8780 (Daily Classic PP), 0.8782 (Hourly 100 SMA) and 0.8783 (Weekly High). Support below can be found at 0.8767 (Hourly 200 SMA), 0.8752 (Weekly Classic PP), 0.8749 (Daily Low), 0.8746 (Yesterday's Low) and 0.8744 (Weekly Low).

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