Chinese key data: what to expect in AUD/USD?

Currently, AUD/USD is trading at 0.7396, up 0.19% on the day, having posted a daily high at 0.7400 and low at 0.7376.

It was an eventful day for month end: all about OPEC - ANZ

AUD/USD has lost its bullish appeal of late, unable to break up past 0.7500, despite the dollar easing up since 20th Nov where the Aussie was able to rally from a touch of the 0.73 handle. The markets have backed the bid in the greenback again in the absence of anything key elsewhere while attention is focused on next month's Fed decisions and next year's prospects for bond prices considering the amount of data coming through that indicate we could be in for a time of reflationary pressures. Today's OPEC accord has clinched the deal in that respect and sent rates higher and the dollar on the rampage.

Oil intermarket: DXY to remain a positive correlation for a while?

For the session today, and very soon, we have the highlight in Chinese data hitting the screens and subsequent price action in the Aussie may not be as reflective of the data as usual considering the focus remains elsewhere. However, China could be the sleeping giant that has been pretty dormant for the best part of H2 and certainly not as much in the limelight as it was at the start of the year while it has managed to stabilize during a time when Brexit and Europe took back the focus.

For today, we have China PMIs that analysts at Westpac explained have carried a more positive tone of late, with services continuing to lead manufacturing." CNY weakness vs USD has helped but the TWI has been stable. PMIs elsewhere in Asia and Europe are also due."

Australia's Q3 capex worse-than-expected, no much change on estimates for 2016/17

AUD/USD levels

On poor data, the greenback could gather momentum and a break below 0.7380 could quickly see a test of the 0.7300 region, with scope to continue down to 0.7250, a major long term static support. Spot is presently trading at 0.7397, and next resistance can be seen at 0.7400 (Daily High), 0.7405 (Daily Classic S2), 0.7409 (Weekly Classic PP), 0.7417 (Hourly 200 SMA) and 0.7418 (Hourly 20 EMA). Support below can be found at 0.7383 (Weekly Low), 0.7382 (Daily Open), 0.7377 (Daily Classic S3), 0.7376 (Daily Low) and 0.7374 (Yesterday's Low).