AUD/USD underpinned by China's PMI, close above 0.78 a bullish event

• Impressive bull run continues on USD weakness
• China's PMI fuels further AUD buys
• AUD/USD technicals hint further upside

AUD/USD keeps defying gravity by building up on top of its most recent gains, accumulating 14 daily gains out of the last 15 days, an impressive run hardly if ever seen in the past. The exchange rate closed on a solid footing at 0.7825 in NY.

China's PMI supports AUD rally

As Valeria Bednarik, Chief Analyst at FXStreet, notes: "The AUD/USD was underpinned by solid Chinese data coupled with broad-based dollar's weakness. China released its official PMIs last Sunday, which showed that growth in the services sector picked up in December, as the index hit 55.0 from previous 54.8, while growth in the manufacturing sector was alongside with expectations, printing 51.6, slightly below previous 51.8."

AUD/USD technicals stay bullish

Technically, Valeria adds: "The pair settled some 20 pips below the mentioned daily high, maintaining the positive tone, despite losing upward momentum according to technical readings in the4 hours chart, as indicators are heading modestly lower, but still within positive territory, while the price holds above a bullish 20 SMA, now around the 0.7800 figure. Moreover, the pair is well above the  61.8% retracement of the October/December decline, this last around 0.7745."