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AUD/USD rises to fresh weekly highs near 0.7070

FXStreet (Mumbai) - The AUD/USD pair finally surpassed the crucial hourly 200-MA then located at 0.7047 and extends beyond, reaching fresh weekly highs in recent dealings.

AUD/USD heading towards 20-DMA

Currently, the AUD/USD pair trades 0.53% higher at 0.7057, retreating from fresh one-week highs recorded at 0.7067 some minutes ago. The Aussie bulls are in complete control and now drive the pair towards the 20-DMA located at 0.7083 as traders continue to digest the latest China PMI reports which came in a tad better than the estimates.

Moreover, the local manufacturing data paired with solid recovery in copper and oil prices also boosts the rally in AUD/USD. The AIG manufacturing index continued to expand in September, coming in at 52.1 versus 51.7 in August.

Whilst, the Aussie seems to have ignored broad based USD strength amid rising demand for higher yielding assets and upbeat fundamentals.

Looking ahead, markets turn their focus towards the upcoming US factory data and weekly claims while Friday’s retail sales from Australia and the US employment report will remain the main highlight.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7083 (20-DMA) levels, above which gains could be extended to 0.7104 (Sept 10 High) levels. On the flip side, support is seen at 0.6998 (Today’s Low) levels from here it to 0.6943 (Sept 10 Low).

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