Looks to test the high from yesterday
The AUDUSD is moving to the upside and looks to test the high from yesterday at 0.71247. The price is currently a couple pips off that level of 0.71225.
The PMI data for manufacturing came in a little bit weaker than last month, but still solidly above the 50.0 level at 54.2. The 50 level is the dividing line between contraction and expansion.
The services PMI was much stronger than last month at 53.8 vs. 50.8 last month. In the composite index was also stronger at 53.6 vs. 51.1 last month.
Technically, the AUDUSD peaked on Wednesday at 0.71361. That high took the price above its 200 hour moving average (green line), and the 50% retracement of the move down from the August 9 high at 0.71313.
In trading on Thursday, the price initially moved lower in the Asian session but found support buyers near the underside of a broken trend line and above the 100 hour moving average (blue line in the chart above). The pair in the North American session was able to get back above its 100 day moving average at 0.7105 and 200 hour moving average at 0.71112. Staying above the 100 hour moving average and 100 day moving average is more favorable to the buyers/polls from a technical perspective. They still need to extend above the 50% at 0.713132 open the door for further upside momentum.
Looking back on the day of the last presidential debate, the AUDUSD initially move higher and peaked at 0.7149 in the early Asian session ahead of the debate. That high tested the 200 hour moving average at the time. The inability to extend higher, and the risk off sentiment after the debate, sent the price to a low of 0.7100 into the European session. However, by the end of the day, the price had moved back above the Asian session high at 0.7149 reaching a peak for the day at 0.71744.
