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AUD/USD ripe for a challenge of the 200 dma

AUD/USD is moved higher on better risk mood and a bid in commodities, opening strongly in the Asian shift and continuing throughout markets on the bid.

AUD/USD data events

The US data was disappointing, with yet another contraction in the manufacturing sectors data with 51.0 vs 52.0 expected vs 52.4 prior for Feb PMI. This supported the commodity currency and now the key focus will come in Australia's Capex Q4 on Thursday in Asia.

AUD/USD levels

AUD/USD rallied at the start of this week and moved up away from the 100 dma at 0.7149 today and has rallied to 0.7247 the high. RSI (14) is at 75 on the hourly sticks as price meets R3 at 0.7240. On a continuation of the upside, the 200 dma is located at 0.7282 and a move above there with closes completes a 100% reversal of the 2016 downside. However on a correction of the short-term bullish trend, S1 is located at 0.710 and S3 at 0.7073. A break of the 0.70 handle and below 0.7023 Feb low opens 0.6834 2016 lows.

GBP/CAD hits 8-month lows

With the pound among the worst performers across the boards amid Brexit fears and the Canadian dollar tracking oil prices higher, the GBP/CAD cross plummeted, trading almost 500 pips down at one stage at an 8-month low of 1.9262 before recovering somewhat to end the day just below 1.9400. Crude prices soared on Monday with WTI futures posting a 6.2% gain to settle at $31.48 a barrel.
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GBP/USD lowest levels since 2009 - FXStreet

Ani Salama, economist at FXStreet offered the conditions surrounding sterling in the open sessions for this week.
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