AUD/USD bounced off 0.8700

FXStreet (Edinburgh) - Buyers seem to have re-emerged around the vicinity of 0.8700 the figure on Monday, reverting the deep pullback in AUD/USD and pushing it to the mid-0.8700s.

AUD/USD weakened by Chinese data

Softer-than-expected NBS manufacturing PMI in China over the weekend is taking a toll on the AUD, dragging spot almost a big-figure from the boundaries of 0.8800 the figure at the beginning of the Asian session. On the domestic side, Building Permits plummeted 11.0% on a monthly basis during September, adding to the selling mood. Strategists at TD Securities suggested, “AUDUSD has backed off the early 2014 low steadily through October but gains have been relatively shallow and the weekly charts highlight the fact that the AUD has failed to hold on to strength; below 0.8640/60 targets a quick drop back to 0.84/85”.

AUD/USD key levels

The pair is now retreating 0.57% at 0.8748 with the immediate support at 0.8719 (low Oct.24) ahead of 0.8642 (low Oct.3) and then 0.8500 (psychological level). On the upside, a break above 0.8899 (high Oct.9) would target 0.8927 (high Sep.23) en route to 0.8950 (high Sep.22).