The latest upbeat Caixin Chinese manufacturing PMI report coupled with the risk-on rally in the equities provided a double booster shot to the Australian dollar, driving the AUD/USD through the roof towards the key 0.7286 levels (Nov 25 High). More so, the recovery in the commodity prices also supported the renewed bids in the Aussie.

KEY LEVELS TO WATCH OUT FOR.

The pair tested Nov 25 High at 0.7286 and now hovers near 0.7275 region, with the immediate resistance at 0.7299 (Oct 23 High), above which gains could be extended to strong hurdle located at 0.7365/66 (Oct 13 & 15 High) levels. On the flip side, should the RBA statement sound dovish or talk down on the AUD level, the price would drop to the immediate support is seen at 0.7220 (20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7169 (100-DMA).