AUD/USD Price Analysis: Soars above 0.6830 on upbeat Caixin Manufacturing PMI

• AUD/USD has climbed above 0.6830 as the risk-on profile has rebounded firmly.
• Better-than-projected release of the Caixin Manufacturing PMI data has supported the Australian Dollar.
• The RSI (14) has shifted into the bullish range of 60.00-80.00, which indicates that the bullish momentum has been activated.

The AUD/USD pair has got immense strength after the release of better-than-anticipated Caixin Manufacturing PMI data. The economic data landed at 49.0 higher than the former release of 48.8 despite a spike in Covid-19 infections after the Chinese administration adopted a sheer pace for reopening the economy.

The US Dollar Index (DXY) has dropped below 103.20 despite a recovery move in the opening session. Meanwhile, S&P500 futures have recovered their entire losses displayed in early Asia, portraying a firmer rebound in the risk-appetite theme.

On a four-hour scale, the Aussie asset is marching towards the horizontal resistance, which is a three-month high, placed from December 13 high at 0.6893. The Australian Dollar has picked strength after a mild correction to near the 20-period Exponential Moving Average (EMA) at 0.6792. Also, the 50-period EMA at 0.6765 is advancing, which indicates that the upside bias is still solid.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 40.00-60.00, which indicates that the bullish momentum has been triggered.

Going forward, a break above December 5 high around 0.6850 will drive the Aussie asset towards a three-month high around 0.6900. A breach of the latter will confirm more upside towards August 30 high at 0.6956.

On the contrary, a downside move below December 29 low at 0.6710 will drag the major further towards December 22 low at 0.6650 followed by November 21 low at 0.6585.

AUD/USD four-hour chart